AADX Cash-Secured Put Strategy
AADX (Applied Aerospace & Defense, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.
Applied Aerospace & Defense, Inc. engages in the provision of integrated manufacturing solutions. It focuses on serving the following markets: Space and Launch Systems, Defense Aviation and Airborne Systems, and C5ISR and Precision Strike Systems. The company was founded on October 7, 2022 and is headquartered in Huntsville, AL.
AADX (Applied Aerospace & Defense, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $3.27B, a beta of 2.05 versus the broader market, a 52-week range of 16.57-24.24, average daily share volume of 1.7M, a public-listing history dating back to 2026, approximately 2K full-time employees. These structural characteristics shape how AADX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.05 indicates AADX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a cash-secured put on AADX?
A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike.
AADX snapshot
As of August 14, 2026, spot at $18.11, ATM IV 64.60%, expected move 18.52%. The cash-secured put on AADX below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this cash-secured put structure on AADX specifically: IV rank is unavailable in the current snapshot, so regime-based timing for AADX is inferred from ATM IV at 64.60% alone, with a market-implied 1-standard-deviation move of approximately 18.52% (roughly $3.35 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AADX expiries trade a higher absolute premium for lower per-day decay. Position sizing on AADX should anchor to the underlying notional of $18.11 per share and to the trader's directional view on AADX stock.
AADX cash-secured put setup
The AADX cash-secured put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AADX at $18.11 on that close, the first option leg uses a $17.20 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AADX chain at a 35-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 AADX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $17.20 | N/A |
AADX cash-secured put risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
AADX cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on AADX. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
When traders use cash-secured put on AADX
Cash-secured puts on AADX earn premium while a trader waits to acquire AADX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AADX.
AADX thesis for this cash-secured put
The market-implied 1-standard-deviation range for AADX extends from approximately $14.76 on the downside to $21.46 on the upside. A AADX cash-secured put lets a trader earn premium while waiting to acquire AADX at the strike price; the strategy is most attractive when the trader is comfortable holding the underlying at that level and IV is rich enough to compensate for the assignment risk. As a Industrials name, AADX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AADX-specific events.
AADX cash-secured put positions are structurally neutral to slightly bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. AADX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AADX alongside the broader basket even when AADX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on AADX carry tail risk when realized volatility exceeds the implied move; review historical AADX earnings reactions and macro stress periods before sizing. Always rebuild the position from current AADX chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on AADX?
- A cash-secured put on AADX is the cash-secured put strategy applied to AADX (stock). The strategy is structurally neutral to slightly bullish: A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike. With AADX stock at $18.11 on the most recent close, the strikes shown on this page are snapped to the nearest listed AADX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AADX cash-secured put max profit and max loss calculated?
- Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium. For the AADX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 64.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AADX cash-secured put?
- The breakeven for the AADX cash-secured put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AADX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a cash-secured put on AADX?
- Cash-secured puts on AADX earn premium while a trader waits to acquire AADX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AADX.
- How does current AADX implied volatility affect this cash-secured put?
- Current AADX ATM IV is 64.60%; IV rank context is unavailable in the current snapshot.