ALSN Cash-Secured Put Strategy
ALSN (Allison Transmission Holdings, Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NYSE.
Allison Transmission Holdings, Inc., together with its subsidiaries, designs, manufactures, and sells commercial and defense fully-automatic transmissions for medium-and heavy-duty commercial vehicles, and medium-and heavy-tactical U.S. defense vehicles worldwide. It offers transmissions for various applications, including distribution, refuse, construction, fire, and emergency on-highway trucks; school and transit buses; motor homes; energy, mining, and construction off-highway vehicles and equipment; and wheeled and tracked defense vehicles. The company markets its transmissions under the Allison Transmission brand name; and remanufactured transmissions under the ReTran brand name. It also sells branded replacement parts, support equipment, aluminum die cast components, and other products necessary to service the installed base of vehicles utilizing its transmissions, as well as defense kits, engineering services, and extended transmission coverage services to various original equipment manufacturers, distributors, and the U.S. government. The company serves customers through an independent network of approximately 1,400 independent distributor and dealer locations. The company was formerly known as Clutch Holdings, Inc.
ALSN (Allison Transmission Holdings, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $10.16B, a trailing P/E of 18.96, a beta of 1.01 versus the broader market, a 52-week range of 76.01-137.62, average daily share volume of 888K, a public-listing history dating back to 2012, approximately 4K full-time employees. These structural characteristics shape how ALSN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.01 places ALSN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ALSN 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 ALSN?
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 ALSN snapshot
As of May 15, 2026, spot at $117.19, ATM IV 33.60%, IV rank 34.84%, expected move 9.63%. The cash-secured put on ALSN 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 ALSN specifically: ALSN IV at 33.60% is mid-range versus its 1-year history, so the credit collected on a ALSN cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 9.63% (roughly $11.29 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 ALSN expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALSN should anchor to the underlying notional of $117.19 per share and to the trader's directional view on ALSN stock.
ALSN cash-secured put setup
The ALSN 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 ALSN near $117.19, the first option leg uses a $110.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALSN 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 ALSN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $110.00 | $1.88 |
ALSN cash-secured put risk and reward
- Net Premium / Debit
- +$187.50
- Max Profit (per contract)
- $187.50
- Max Loss (per contract)
- -$10,811.50
- Breakeven(s)
- $108.13
- Risk / Reward Ratio
- 0.017
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
ALSN cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ALSN. 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% | -$10,811.50 |
| $25.92 | -77.9% | -$8,220.47 |
| $51.83 | -55.8% | -$5,629.45 |
| $77.74 | -33.7% | -$3,038.42 |
| $103.65 | -11.6% | -$447.40 |
| $129.56 | +10.6% | +$187.50 |
| $155.47 | +32.7% | +$187.50 |
| $181.38 | +54.8% | +$187.50 |
| $207.29 | +76.9% | +$187.50 |
| $233.20 | +99.0% | +$187.50 |
When traders use cash-secured put on ALSN
Cash-secured puts on ALSN earn premium while a trader waits to acquire ALSN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ALSN.
ALSN thesis for this cash-secured put
The market-implied 1-standard-deviation range for ALSN extends from approximately $105.90 on the downside to $128.48 on the upside. A ALSN cash-secured put lets a trader earn premium while waiting to acquire ALSN 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 ALSN IV rank near 34.84% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on ALSN should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, ALSN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALSN-specific events.
ALSN 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. ALSN positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALSN alongside the broader basket even when ALSN-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ALSN carry tail risk when realized volatility exceeds the implied move; review historical ALSN earnings reactions and macro stress periods before sizing. Always rebuild the position from current ALSN chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on ALSN?
- A cash-secured put on ALSN is the cash-secured put strategy applied to ALSN (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 ALSN stock trading near $117.19, the strikes shown on this page are snapped to the nearest listed ALSN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ALSN 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 ALSN cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 33.60%), the computed maximum profit is $187.50 per contract and the computed maximum loss is -$10,811.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ALSN cash-secured put?
- The breakeven for the ALSN cash-secured put priced on this page is roughly $108.13 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 ALSN market-implied 1-standard-deviation expected move is approximately 9.63%; 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 ALSN?
- Cash-secured puts on ALSN earn premium while a trader waits to acquire ALSN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ALSN.
- How does current ALSN implied volatility affect this cash-secured put?
- ALSN ATM IV is at 33.60% with IV rank near 34.84%, 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.