AM Cash-Secured Put Strategy
AM (Antero Midstream Corporation), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.
Antero Midstream Corporation primarily owns, operates, and expands vital midstream energy infrastructure. Its operations are divided into two key divisions: Gathering and Processing, and Water Handling. The Gathering and Processing segment involves a comprehensive network of pipelines and compressor stations that are crucial for collecting and treating natural gas output from Antero Resources' wells situated across West Virginia and Ohio. Meanwhile, the Water Handling segment focuses on supplying fresh water, supported by its array of pumping stations, water storage, and blending facilities. Established in 2013, the company maintains its corporate headquarters in Denver, Colorado.
AM (Antero Midstream Corporation) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $9.66B, a trailing P/E of 14.35, a beta of 0.63 versus the broader market, a 52-week range of 17.119-23.84, average daily share volume of 2.6M, a public-listing history dating back to 2017, approximately 632 full-time employees. These structural characteristics shape how AM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.63 indicates AM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AM 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 AM?
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.
AM snapshot
As of November 13, 2026, spot at $20.41, ATM IV 26.10%, IV rank 63.40%, expected move 7.48%. The cash-secured put on AM below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 63-day expiry.
Why this cash-secured put structure on AM specifically: AM IV at 26.10% is mid-range versus its 1-year history, so the credit collected on a AM cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 7.48% (roughly $1.53 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AM expiries trade a higher absolute premium for lower per-day decay. Position sizing on AM should anchor to the underlying notional of $20.41 per share and to the trader's directional view on AM stock.
AM cash-secured put setup
The AM cash-secured put below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AM at $20.41 on that close, the first option leg uses a $19.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AM chain at a 63-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 AM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $19.00 | $0.30 |
AM cash-secured put risk and reward
- Net Premium / Debit
- +$30.00
- Max Profit (per contract)
- $30.00
- Max Loss (per contract)
- -$1,869.00
- Breakeven(s)
- $18.70
- Risk / Reward Ratio
- 0.016
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
AM cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on AM. 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% | -$1,869.00 |
| $4.52 | -77.8% | -$1,417.83 |
| $9.03 | -55.7% | -$966.67 |
| $13.54 | -33.6% | -$515.50 |
| $18.06 | -11.5% | -$64.34 |
| $22.57 | +10.6% | +$30.00 |
| $27.08 | +32.7% | +$30.00 |
| $31.59 | +54.8% | +$30.00 |
| $36.10 | +76.9% | +$30.00 |
| $40.61 | +99.0% | +$30.00 |
When traders use cash-secured put on AM
Cash-secured puts on AM earn premium while a trader waits to acquire AM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AM.
AM thesis for this cash-secured put
The market-implied 1-standard-deviation range for AM extends from approximately $18.88 on the downside to $21.94 on the upside. A AM cash-secured put lets a trader earn premium while waiting to acquire AM 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 AM IV rank near 63.40% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on AM should anchor more to the directional view and the expected-move geometry. As a Energy name, AM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AM-specific events.
AM 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. AM positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AM alongside the broader basket even when AM-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on AM carry tail risk when realized volatility exceeds the implied move; review historical AM earnings reactions and macro stress periods before sizing. Always rebuild the position from current AM chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on AM?
- A cash-secured put on AM is the cash-secured put strategy applied to AM (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 AM stock at $20.41 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed AM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AM 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 AM cash-secured put priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 26.10%), the computed maximum profit is $30.00 per contract and the computed maximum loss is -$1,869.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AM cash-secured put?
- The breakeven for the AM cash-secured put priced on this page is roughly $18.70 at expiration, derived from the November 13, 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 AM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.48%; 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 AM?
- Cash-secured puts on AM earn premium while a trader waits to acquire AM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AM.
- How does current AM implied volatility affect this cash-secured put?
- AM ATM IV is at 26.10% with IV rank near 63.40%, 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.