AEIS Cash-Secured Put Strategy
AEIS (Advanced Energy Industries, Inc.), in the Industrials sector, (Electrical Equipment & Parts industry), listed on NASDAQ.
Advanced Energy Industries, Inc. designs, manufactures, sells, and supports precision power conversion, measurement, and control solutions worldwide. It offers plasma power solutions, including direct current (DC), pulsed DC, low frequency alternating current, high voltage, and radio frequency (RF) power supplies, as well as RF power supplies, RF matching networks, and RF instrumentation products; and remote plasma sources for reactive gas applications. The company also provides power control modules and thermal instrumentation products for rapid thermal processing, chemical vapor deposition, epitaxy, crystal growing, and chemical processing, as well as metal, carbon fiber, and glass manufacturing and other industrial power applications; high voltage DC-DC products for semiconductor wafer processing and metrology, electrostatic clamping of substrates, scientific instrumentation, mass spectrometry, and X-ray systems for industrial and analytical applications; and low voltage DC-DC board mounted solutions for use in healthcare, telecommunications, test and measurement, instrumentation, and industrial equipment applications, as well as distributed power in server and storage systems. In addition, it offers gas sensing and monitoring products for the energy market, air quality monitoring, and automobile emission monitoring and testing; and embedded power products for medical equipment or IEC 60950-1 for information technology equipment. Further, it offers conversions, upgrades, and refurbishments and used equipment to companies, as well as repair services. The company provides its products through a direct sales force, independent sales representatives, channel partners, and distributors.
AEIS (Advanced Energy Industries, Inc.) trades in the Industrials sector, specifically Electrical Equipment & Parts, with a market capitalization of approximately $12.90B, a trailing P/E of 67.13, a beta of 1.40 versus the broader market, a 52-week range of 112.25-397.44, average daily share volume of 661K, a public-listing history dating back to 1995, approximately 10K full-time employees. These structural characteristics shape how AEIS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.40 indicates AEIS 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 67.13 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. AEIS 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 AEIS?
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.
Current AEIS snapshot
As of May 15, 2026, spot at $326.23, ATM IV 62.80%, IV rank 44.60%, expected move 18.00%. The cash-secured put on AEIS below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this cash-secured put structure on AEIS specifically: AEIS IV at 62.80% is mid-range versus its 1-year history, so the credit collected on a AEIS cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 18.00% (roughly $58.74 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AEIS expiries trade a higher absolute premium for lower per-day decay. Position sizing on AEIS should anchor to the underlying notional of $326.23 per share and to the trader's directional view on AEIS stock.
AEIS cash-secured put setup
The AEIS 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 AEIS near $326.23, the first option leg uses a $310.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AEIS chain at a 34-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 AEIS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $310.00 | $17.00 |
AEIS cash-secured put risk and reward
- Net Premium / Debit
- +$1,700.00
- Max Profit (per contract)
- $1,700.00
- Max Loss (per contract)
- -$29,299.00
- Breakeven(s)
- $293.00
- Risk / Reward Ratio
- 0.058
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
AEIS cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on AEIS. 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% | -$29,299.00 |
| $72.14 | -77.9% | -$22,085.98 |
| $144.27 | -55.8% | -$14,872.97 |
| $216.40 | -33.7% | -$7,659.95 |
| $288.53 | -11.6% | -$446.94 |
| $360.66 | +10.6% | +$1,700.00 |
| $432.79 | +32.7% | +$1,700.00 |
| $504.92 | +54.8% | +$1,700.00 |
| $577.05 | +76.9% | +$1,700.00 |
| $649.18 | +99.0% | +$1,700.00 |
When traders use cash-secured put on AEIS
Cash-secured puts on AEIS earn premium while a trader waits to acquire AEIS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AEIS.
AEIS thesis for this cash-secured put
The market-implied 1-standard-deviation range for AEIS extends from approximately $267.49 on the downside to $384.97 on the upside. A AEIS cash-secured put lets a trader earn premium while waiting to acquire AEIS 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 AEIS IV rank near 44.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on AEIS should anchor more to the directional view and the expected-move geometry. As a Industrials name, AEIS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AEIS-specific events.
AEIS 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. AEIS positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AEIS alongside the broader basket even when AEIS-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on AEIS carry tail risk when realized volatility exceeds the implied move; review historical AEIS earnings reactions and macro stress periods before sizing. Always rebuild the position from current AEIS chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on AEIS?
- A cash-secured put on AEIS is the cash-secured put strategy applied to AEIS (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 AEIS stock trading near $326.23, the strikes shown on this page are snapped to the nearest listed AEIS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AEIS 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 AEIS cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 62.80%), the computed maximum profit is $1,700.00 per contract and the computed maximum loss is -$29,299.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AEIS cash-secured put?
- The breakeven for the AEIS cash-secured put priced on this page is roughly $293.00 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current AEIS market-implied 1-standard-deviation expected move is approximately 18.00%; 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 AEIS?
- Cash-secured puts on AEIS earn premium while a trader waits to acquire AEIS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AEIS.
- How does current AEIS implied volatility affect this cash-secured put?
- AEIS ATM IV is at 62.80% with IV rank near 44.60%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.