AGX Cash-Secured Put Strategy
AGX (Argan, Inc.), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.
Argan, Inc., operating through its various subsidiaries, offers a comprehensive suite of services to the power generation and renewable energy sectors. These services span engineering, procurement, construction (EPC), commissioning, operations management, maintenance, project development, and technical and consulting support. The company is structured into three main operating divisions: 1. Power Industry Services: This segment specializes in delivering EPC solutions for alternative energy projects, such as biomass plants, wind farms, and solar fields. It also provides design, construction, project management, start-up, and ongoing operation services for power generation facilities, with a portfolio that includes projects accounting for approximately 15 gigawatts of power-generating capacity. Its client base includes independent power project developers, public utilities, power plant equipment suppliers, and other energy plant construction companies. 2.
AGX (Argan, Inc.) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $8.02B, a trailing P/E of 49.51, a beta of 0.61 versus the broader market, a 52-week range of 197-805.75, average daily share volume of 332K, a public-listing history dating back to 1995, approximately 1K full-time employees. These structural characteristics shape how AGX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.61 indicates AGX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 49.51 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. AGX 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 AGX?
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.
AGX snapshot
As of August 14, 2026, spot at $578.17, ATM IV 85.60%, IV rank 52.95%, expected move 24.54%. The cash-secured put on AGX 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 AGX specifically: AGX IV at 85.60% is mid-range versus its 1-year history, so the credit collected on a AGX cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 24.54% (roughly $141.89 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 AGX expiries trade a higher absolute premium for lower per-day decay. Position sizing on AGX should anchor to the underlying notional of $578.17 per share and to the trader's directional view on AGX stock.
AGX cash-secured put setup
The AGX 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 AGX at $578.17 on that close, the first option leg uses a $550.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AGX 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 AGX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $550.00 | $43.30 |
AGX cash-secured put risk and reward
- Net Premium / Debit
- +$4,330.00
- Max Profit (per contract)
- $4,330.00
- Max Loss (per contract)
- -$50,669.00
- Breakeven(s)
- $506.70
- Risk / Reward Ratio
- 0.085
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
AGX cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on AGX. 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% | -$50,669.00 |
| $127.85 | -77.9% | -$37,885.45 |
| $255.68 | -55.8% | -$25,101.90 |
| $383.52 | -33.7% | -$12,318.36 |
| $511.35 | -11.6% | +$465.19 |
| $639.19 | +10.6% | +$4,330.00 |
| $767.02 | +32.7% | +$4,330.00 |
| $894.86 | +54.8% | +$4,330.00 |
| $1,022.69 | +76.9% | +$4,330.00 |
| $1,150.53 | +99.0% | +$4,330.00 |
When traders use cash-secured put on AGX
Cash-secured puts on AGX earn premium while a trader waits to acquire AGX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AGX.
AGX thesis for this cash-secured put
The market-implied 1-standard-deviation range for AGX extends from approximately $436.28 on the downside to $720.06 on the upside. A AGX cash-secured put lets a trader earn premium while waiting to acquire AGX 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 AGX IV rank near 52.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on AGX should anchor more to the directional view and the expected-move geometry. As a Industrials name, AGX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AGX-specific events.
AGX 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. AGX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AGX alongside the broader basket even when AGX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on AGX carry tail risk when realized volatility exceeds the implied move; review historical AGX earnings reactions and macro stress periods before sizing. Always rebuild the position from current AGX chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on AGX?
- A cash-secured put on AGX is the cash-secured put strategy applied to AGX (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 AGX stock at $578.17 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AGX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AGX 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 AGX cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 85.60%), the computed maximum profit is $4,330.00 per contract and the computed maximum loss is -$50,669.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AGX cash-secured put?
- The breakeven for the AGX cash-secured put priced on this page is roughly $506.70 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 AGX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 24.54%; 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 AGX?
- Cash-secured puts on AGX earn premium while a trader waits to acquire AGX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AGX.
- How does current AGX implied volatility affect this cash-secured put?
- AGX ATM IV is at 85.60% with IV rank near 52.95%, 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.