ALRS Cash-Secured Put Strategy
ALRS (Alerus Financial Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Alerus Financial Corporation, operating primarily through its subsidiary Alerus Financial, National Association, delivers a broad spectrum of financial services to both commercial clients and individual consumers. The company organizes its operations across four distinct segments: Banking, Retirement and Benefit Services, Wealth Management, and Mortgage. Within its Banking segment, Alerus provides a comprehensive array of deposit solutions, including checking, savings, money market, and certificate of deposit accounts. It also supports businesses with robust treasury management products like electronic receivables management, remote deposit capture, cash vault services, and other cash management tools. Lending solutions encompass various commercial loans, such as business term loans, lines of credit, commercial real estate financing, and construction and land development loans, alongside consumer offerings like residential first and second mortgages and installment loans. The Retirement and Benefit Services division focuses on administering retirement plans, providing investment advisory services, managing employee stock ownership plans (ESOPs), and offering payroll, health savings accounts (HSAs), and other employee benefits, including individual retirement accounts (IRAs).
ALRS (Alerus Financial Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $774.5M, a trailing P/E of 28.89, a beta of 0.71 versus the broader market, a 52-week range of 20.26-30.95, average daily share volume of 179K, a public-listing history dating back to 2003, approximately 846 full-time employees. These structural characteristics shape how ALRS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.71 places ALRS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ALRS 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 ALRS?
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 ALRS snapshot
As of June 30, 2026, spot at $30.98, ATM IV 67.30%, IV rank 33.09%, expected move 19.29%. The cash-secured put on ALRS 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 17-day expiry.
Why this cash-secured put structure on ALRS specifically: ALRS IV at 67.30% is mid-range versus its 1-year history, so the credit collected on a ALRS cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 19.29% (roughly $5.98 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ALRS expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALRS should anchor to the underlying notional of $30.98 per share and to the trader's directional view on ALRS stock.
ALRS cash-secured put setup
The ALRS 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 ALRS near $30.98, the first option leg uses a $29.43 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALRS chain at a 17-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 ALRS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $29.43 | N/A |
ALRS 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.
ALRS cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ALRS. 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 ALRS
Cash-secured puts on ALRS earn premium while a trader waits to acquire ALRS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ALRS.
ALRS thesis for this cash-secured put
The market-implied 1-standard-deviation range for ALRS extends from approximately $25.00 on the downside to $36.96 on the upside. A ALRS cash-secured put lets a trader earn premium while waiting to acquire ALRS 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 ALRS IV rank near 33.09% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on ALRS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, ALRS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALRS-specific events.
ALRS 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. ALRS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALRS alongside the broader basket even when ALRS-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ALRS carry tail risk when realized volatility exceeds the implied move; review historical ALRS earnings reactions and macro stress periods before sizing. Always rebuild the position from current ALRS chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on ALRS?
- A cash-secured put on ALRS is the cash-secured put strategy applied to ALRS (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 ALRS stock trading near $30.98, the strikes shown on this page are snapped to the nearest listed ALRS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ALRS 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 ALRS cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 67.30%), 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 ALRS cash-secured put?
- The breakeven for the ALRS cash-secured put priced on this page is no defined breakeven on the modeled curve 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 ALRS market-implied 1-standard-deviation expected move is approximately 19.29%; 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 ALRS?
- Cash-secured puts on ALRS earn premium while a trader waits to acquire ALRS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ALRS.
- How does current ALRS implied volatility affect this cash-secured put?
- ALRS ATM IV is at 67.30% with IV rank near 33.09%, 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.