How to Snag StoneCo Stock at a Steep Discount with Put Options

The Brazilian fintech sector is a rollercoaster right now, and StoneCo Ltd. (STNE) is at the center of the chaos. With its stock price swinging wildly and options volatility hitting stratospheric levels, this is a moment for bold investors to pounce—not with a gamble, but with a calculated strategy. Let's dive into how you can use put options to buy STNE at a discount while shielding yourself from the storm.

The Volatility Play: Why STNE Options Are a Gold Mine

StoneCo's June 2025 options are screaming “opportunity.” Take the $12 put option (STNE250613P00012000), which closed at $0.22 on June 6, 2025, with an implied volatility of 112.5%. That's a premium you can pocket today if you're willing to sell the put. Meanwhile, the $14 put (STNE250613P00014000) dropped 78% in a single day, signaling a market in flux—but also a chance to capitalize on fear.

The key here is implied volatility. These numbers aren't just abstract stats; they're a reflection of panic. High IV means options are priced for extreme moves, which creates fat premiums for put sellers. And since StoneCo dominates Brazil's merchant tech space—think payment processing, digital banking, and credit services—its stock is a proxy for the entire sector's health. If Brazil's economy or regulations shift, STNE will feel it first.

The Strategy: Sell Puts to Buy Low

Here's how to turn volatility into profit:

1. Choose Your Strike: Focus on a put option with a strike price below the current $14.27 stock price—say, $13 or $12. These strikes are far enough below current levels to give you a meaningful discount but close enough that assignment isn't a sure thing.

2. Collect the Premium: Selling a $12 put with a $0.22 premium gives you immediate cash. If STNE stays above $12 by expiration, you keep the premium—like free money.

3. Buy at the Discount: If STNE drops below your strike, you're obligated to buy it at the strike price. But that's the point! If you wanted to own STNE at $12, this forces your hand at a price you'd gladly pay. Your net cost becomes $12 minus the premium ($0.22), or $11.78—a 17% discount from $14.27.

Why This Works in a Volatile Market

• High Volatility = Higher Premiums: The $14 put's 51.17% IV and the $12 put's 112.5% IV mean you're paid more for taking on risk.
• Protection Against a Crash: Even if STNE plummets to the $5 strike (yes, that's a real option with 1,130% IV), you're not forced to own it unless you want to.
• No Guesswork: You're not betting on a bottom—you're setting a price you're happy with. If STNE stays strong, you still profit from the premium.

The Risks: Proceed with Caution

• Assignment Risk: If STNE drops below your strike, you must buy it. Make sure you have the cash and the conviction to own STNE at that price.
• Volatility Collapse: If fear fades and IV drops, the put's value could evaporate. But if you're assigned, that's a win, not a loss.
• Sector Headwinds: Brazil's economy or regulatory changes (e.g., new fintech laws) could hurt STNE despite your strategy. Stay plugged into macro news.

Final Call: Go for It—But Stay Smart

StoneCo isn't just a stock—it's a bet on Brazil's digital future. With its Stone Hubs and e-commerce partnerships, it's a leader that can thrive if the economy recovers. Selling puts lets you pay less for that growth while collecting cash upfront.

Action Plan:
- Sell the $12 put (expires June 13, 2025) at the current $0.22 premium.
- Set a stop-loss if STNE drops below $11—indicating a deeper collapse than expected.
- Monitor Brazil's economic data and STNE's partnerships for clues on the sector's health.

This isn't a get-rich-quick scheme. It's a disciplined way to turn fear into fuel—and grab StoneCo at a price that screams “value.”

Bottom Line: Volatility is your friend here. Use put options to buy STNE at a discount while the market's panicking. Just make sure you're ready to own it if the worst-case scenario hits.