AME Cash-Secured Put Strategy
AME (AMETEK, Inc.), in the Industrials sector, (Electrical Equipment & Parts industry), listed on NYSE.
AMETEK, Inc. is a global enterprise that develops and markets a diverse portfolio of electronic instruments and electromechanical devices. The company's operations are structured into two principal divisions: the Electronic Instruments Group (EIG) and the Electromechanical Group (EMG). The EIG segment provides sophisticated instrumentation solutions catering to various sectors, including process control, aerospace, power generation, and general industrial applications. It also delivers specialized process and analytical tools essential for industries such as oil and gas, petrochemicals, pharmaceuticals, semiconductors, automation, and food and beverage production. Furthermore, EIG supplies equipment for laboratory settings, ultra-precision manufacturing, medical diagnostics, and critical test and measurement tasks. Its offerings encompass power quality monitoring and metering devices, uninterruptible power supplies, programmable power equipment, electromagnetic compatibility testing apparatus, gas turbine components, environmental health and safety sensors, dashboard instruments for heavy vehicles, and specialized controls for food and beverage processing.
AME (AMETEK, Inc.) trades in the Industrials sector, specifically Electrical Equipment & Parts, with a market capitalization of approximately $59.25B, a trailing P/E of 37.56, a beta of 0.99 versus the broader market, a 52-week range of 179.24-259.99, average daily share volume of 1.2M, a public-listing history dating back to 1984, approximately 23K full-time employees. These structural characteristics shape how AME stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.99 places AME roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 37.56 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. AME 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 AME?
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.
AME snapshot
As of August 14, 2026, spot at $255.59, ATM IV 21.40%, IV rank 24.57%, expected move 6.14%. The cash-secured put on AME 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 AME specifically: AME IV at 21.40% is on the cheap side of its 1-year range, which means a premium-selling AME cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.14% (roughly $15.68 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 AME expiries trade a higher absolute premium for lower per-day decay. Position sizing on AME should anchor to the underlying notional of $255.59 per share and to the trader's directional view on AME stock.
AME cash-secured put setup
The AME 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 AME at $255.59 on that close, the first option leg uses a $240.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AME 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 AME shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $240.00 | $1.95 |
AME cash-secured put risk and reward
- Net Premium / Debit
- +$195.00
- Max Profit (per contract)
- $195.00
- Max Loss (per contract)
- -$23,804.00
- Breakeven(s)
- $238.05
- Risk / Reward Ratio
- 0.008
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
AME cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on AME. 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% | -$23,804.00 |
| $56.52 | -77.9% | -$18,152.87 |
| $113.03 | -55.8% | -$12,501.75 |
| $169.54 | -33.7% | -$6,850.62 |
| $226.06 | -11.6% | -$1,199.50 |
| $282.57 | +10.6% | +$195.00 |
| $339.08 | +32.7% | +$195.00 |
| $395.59 | +54.8% | +$195.00 |
| $452.10 | +76.9% | +$195.00 |
| $508.61 | +99.0% | +$195.00 |
When traders use cash-secured put on AME
Cash-secured puts on AME earn premium while a trader waits to acquire AME stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AME.
AME thesis for this cash-secured put
The market-implied 1-standard-deviation range for AME extends from approximately $239.91 on the downside to $271.27 on the upside. A AME cash-secured put lets a trader earn premium while waiting to acquire AME 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 AME IV rank near 24.57% 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 AME at 21.40%. As a Industrials name, AME options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AME-specific events.
AME 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. AME positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AME alongside the broader basket even when AME-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on AME carry tail risk when realized volatility exceeds the implied move; review historical AME earnings reactions and macro stress periods before sizing. Always rebuild the position from current AME chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on AME?
- A cash-secured put on AME is the cash-secured put strategy applied to AME (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 AME stock at $255.59 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AME chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AME 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 AME cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 21.40%), the computed maximum profit is $195.00 per contract and the computed maximum loss is -$23,804.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AME cash-secured put?
- The breakeven for the AME cash-secured put priced on this page is roughly $238.05 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 AME market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.14%; 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 AME?
- Cash-secured puts on AME earn premium while a trader waits to acquire AME stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AME.
- How does current AME implied volatility affect this cash-secured put?
- AME ATM IV is at 21.40% with IV rank near 24.57%, 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.