AJG Cash-Secured Put Strategy
AJG (Arthur J. Gallagher & Co.), in the Financial Services sector, (Insurance - Brokers industry), listed on NYSE.
Arthur J. Gallagher & Co., alongside its various subsidiaries, operates globally, providing a wide array of services that encompass insurance brokerage, expert consulting, and outsourced claims settlement and administration. Its geographic reach extends across the United States, Australia, Bermuda, Canada, the Caribbean, New Zealand, India, and the United Kingdom. The company's business model is divided into two primary segments: Brokerage and Risk Management. The Brokerage division manages both retail and wholesale insurance operations. It also supports other brokers, including independent ones, in securing specialized or hard-to-place insurance coverage.
AJG (Arthur J. Gallagher & Co.) trades in the Financial Services sector, specifically Insurance - Brokers, with a market capitalization of approximately $58.07B, a trailing P/E of 36.06, a beta of 0.53 versus the broader market, a 52-week range of 190.75-323.25, average daily share volume of 1.9M, a public-listing history dating back to 1984, approximately 72K full-time employees. These structural characteristics shape how AJG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.53 indicates AJG 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 36.06 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. AJG 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 AJG?
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 AJG snapshot
As of June 29, 2026, spot at $225.34, ATM IV 25.90%, IV rank 21.85%, expected move 7.43%. The cash-secured put on AJG 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 18-day expiry.
Why this cash-secured put structure on AJG specifically: AJG IV at 25.90% is on the cheap side of its 1-year range, which means a premium-selling AJG cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.43% (roughly $16.73 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AJG expiries trade a higher absolute premium for lower per-day decay. Position sizing on AJG should anchor to the underlying notional of $225.34 per share and to the trader's directional view on AJG stock.
AJG cash-secured put setup
The AJG 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 AJG near $225.34, the first option leg uses a $210.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AJG chain at a 18-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 AJG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $210.00 | $1.18 |
AJG cash-secured put risk and reward
- Net Premium / Debit
- +$117.50
- Max Profit (per contract)
- $117.50
- Max Loss (per contract)
- -$20,881.50
- Breakeven(s)
- $209.00
- Risk / Reward Ratio
- 0.006
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
AJG cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on AJG. 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% | -$20,881.50 |
| $49.83 | -77.9% | -$15,899.22 |
| $99.66 | -55.8% | -$10,916.94 |
| $149.48 | -33.7% | -$5,934.66 |
| $199.30 | -11.6% | -$952.37 |
| $249.12 | +10.6% | +$117.50 |
| $298.95 | +32.7% | +$117.50 |
| $348.77 | +54.8% | +$117.50 |
| $398.59 | +76.9% | +$117.50 |
| $448.42 | +99.0% | +$117.50 |
When traders use cash-secured put on AJG
Cash-secured puts on AJG earn premium while a trader waits to acquire AJG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AJG.
AJG thesis for this cash-secured put
The market-implied 1-standard-deviation range for AJG extends from approximately $208.61 on the downside to $242.07 on the upside. A AJG cash-secured put lets a trader earn premium while waiting to acquire AJG 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 AJG IV rank near 21.85% 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 AJG at 25.90%. As a Financial Services name, AJG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AJG-specific events.
AJG 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. AJG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AJG alongside the broader basket even when AJG-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on AJG carry tail risk when realized volatility exceeds the implied move; review historical AJG earnings reactions and macro stress periods before sizing. Always rebuild the position from current AJG chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on AJG?
- A cash-secured put on AJG is the cash-secured put strategy applied to AJG (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 AJG stock trading near $225.34, the strikes shown on this page are snapped to the nearest listed AJG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AJG 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 AJG cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 25.90%), the computed maximum profit is $117.50 per contract and the computed maximum loss is -$20,881.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AJG cash-secured put?
- The breakeven for the AJG cash-secured put priced on this page is roughly $209.00 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 AJG market-implied 1-standard-deviation expected move is approximately 7.43%; 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 AJG?
- Cash-secured puts on AJG earn premium while a trader waits to acquire AJG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AJG.
- How does current AJG implied volatility affect this cash-secured put?
- AJG ATM IV is at 25.90% with IV rank near 21.85%, 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.