AAON Cash-Secured Put Strategy
AAON (AAON, Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.
AAON, Inc., along with its affiliated companies, focuses on the engineering, manufacturing, promotion, and sale of heating and air conditioning systems throughout the United States and Canada. The enterprise's operations are divided into three distinct divisions: AAON Oklahoma, AAON Coil Products, and BasX. Its comprehensive product portfolio features a wide array of HVAC solutions, including rooftop units, specialized data center cooling, cleanroom climate control, chillers, pre-packaged outdoor mechanical rooms, air handling units, fresh air supply units, energy recovery ventilation, condensing units, geothermal/water-source heat pumps, coils, and integrated control systems. AAON markets and sells these offerings to a diverse set of commercial sectors, such as retail, manufacturing, educational institutions, hospitality, supermarkets, data centers, and the medical and pharmaceutical industries. Product distribution is managed through a dual approach, utilizing a network of independent manufacturing representatives in addition to an in-house sales team. Established in 1987, AAON, Inc. is headquartered in Tulsa, Oklahoma.
AAON (AAON, Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $6.98B, a trailing P/E of 43.98, a beta of 1.44 versus the broader market, a 52-week range of 73.19-150.46, average daily share volume of 1.1M, a public-listing history dating back to 1992, approximately 6K full-time employees. These structural characteristics shape how AAON stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.44 indicates AAON has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 43.98 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. AAON pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a cash-secured put on AAON?
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.
AAON snapshot
As of August 14, 2026, spot at $87.30, ATM IV 61.50%, IV rank 21.11%, expected move 17.63%. The cash-secured put on AAON below is built from the August 14, 2026 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 AAON specifically: AAON IV at 61.50% is on the cheap side of its 1-year range, which means a premium-selling AAON cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 17.63% (roughly $15.39 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 AAON expiries trade a higher absolute premium for lower per-day decay. Position sizing on AAON should anchor to the underlying notional of $87.30 per share and to the trader's directional view on AAON stock.
AAON cash-secured put setup
The AAON cash-secured put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AAON at $87.30 on that close, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AAON 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 AAON shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $85.00 | $4.90 |
AAON cash-secured put risk and reward
- Net Premium / Debit
- +$490.00
- Max Profit (per contract)
- $490.00
- Max Loss (per contract)
- -$8,009.00
- Breakeven(s)
- $80.10
- Risk / Reward Ratio
- 0.061
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
AAON cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on AAON. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$8,009.00 |
| $19.31 | -77.9% | -$6,078.86 |
| $38.61 | -55.8% | -$4,148.72 |
| $57.91 | -33.7% | -$2,218.58 |
| $77.22 | -11.6% | -$288.44 |
| $96.52 | +10.6% | +$490.00 |
| $115.82 | +32.7% | +$490.00 |
| $135.12 | +54.8% | +$490.00 |
| $154.42 | +76.9% | +$490.00 |
| $173.72 | +99.0% | +$490.00 |
When traders use cash-secured put on AAON
Cash-secured puts on AAON earn premium while a trader waits to acquire AAON stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AAON.
AAON thesis for this cash-secured put
The market-implied 1-standard-deviation range for AAON extends from approximately $71.91 on the downside to $102.69 on the upside. A AAON cash-secured put lets a trader earn premium while waiting to acquire AAON 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. Current AAON IV rank near 21.11% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on AAON at 61.50%. As a Industrials name, AAON options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AAON-specific events.
AAON 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. AAON positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AAON alongside the broader basket even when AAON-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on AAON carry tail risk when realized volatility exceeds the implied move; review historical AAON earnings reactions and macro stress periods before sizing. Always rebuild the position from current AAON chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on AAON?
- A cash-secured put on AAON is the cash-secured put strategy applied to AAON (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 AAON stock at $87.30 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AAON chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AAON 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 AAON cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 61.50%), the computed maximum profit is $490.00 per contract and the computed maximum loss is -$8,009.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AAON cash-secured put?
- The breakeven for the AAON cash-secured put priced on this page is roughly $80.10 at expiration, derived from the August 14, 2026 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 AAON market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.63%; 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 AAON?
- Cash-secured puts on AAON earn premium while a trader waits to acquire AAON stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AAON.
- How does current AAON implied volatility affect this cash-secured put?
- AAON ATM IV is at 61.50% with IV rank near 21.11%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.