AVY Cash-Secured Put Strategy
AVY (Avery Dennison Corporation), in the Industrials sector, (Business Equipment & Supplies industry), listed on NYSE.
Avery Dennison Corporation manufactures and markets pressure-sensitive materials and products in the United States, Europe, Asia, Latin America, and internationally. The company's Label and Graphic Materials segment offers pressure-sensitive label and packaging materials; and graphics and reflective products under the Fasson, JAC, Avery Dennison, and Mactac brands, as well as durable cast and reflective films. It provides its products to the home and personal care, beer and beverage, durables, pharmaceutical, wine and spirits, and food market segments; architectural, commercial sign, digital printing, and other related market segments; construction, automotive, and fleet transportation market segments, as well as traffic and safety applications; and sign shops, commercial printers, and designers. The company's Retail Branding and Information Solutions segment designs, manufactures, and sells brand embellishments, graphic tickets, tags and labels, and sustainable packaging solutions, as well as offers creative services; radio-frequency identification products; visibility and loss prevention solutions; price ticketing and marking solutions; care, content, and country of origin compliance solutions; and brand protection and security solutions. It serves retailers, brand owners, apparel manufacturers, distributors, and industrial customers. The company's Industrial and Healthcare Materials segment offers tapes; pressure-sensitive adhesive based materials and converted products; medical fasteners; and performance polymers under the Fasson, Avery Dennison, and Yongle brands.
AVY (Avery Dennison Corporation) trades in the Industrials sector, specifically Business Equipment & Supplies, with a market capitalization of approximately $12.14B, a trailing P/E of 17.72, a beta of 0.85 versus the broader market, a 52-week range of 156.23-199.54, average daily share volume of 728K, a public-listing history dating back to 1977, approximately 35K full-time employees. These structural characteristics shape how AVY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.85 places AVY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVY 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 AVY?
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 AVY snapshot
As of May 15, 2026, spot at $156.24, ATM IV 25.50%, IV rank 46.26%, expected move 7.31%. The cash-secured put on AVY 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 AVY specifically: AVY IV at 25.50% is mid-range versus its 1-year history, so the credit collected on a AVY cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 7.31% (roughly $11.42 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 AVY expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVY should anchor to the underlying notional of $156.24 per share and to the trader's directional view on AVY stock.
AVY cash-secured put setup
The AVY 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 AVY near $156.24, the first option leg uses a $150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVY 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 AVY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $150.00 | $2.35 |
AVY cash-secured put risk and reward
- Net Premium / Debit
- +$235.00
- Max Profit (per contract)
- $235.00
- Max Loss (per contract)
- -$14,764.00
- Breakeven(s)
- $147.65
- 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.
AVY cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on AVY. 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% | -$14,764.00 |
| $34.55 | -77.9% | -$11,309.56 |
| $69.10 | -55.8% | -$7,855.12 |
| $103.64 | -33.7% | -$4,400.67 |
| $138.19 | -11.6% | -$946.23 |
| $172.73 | +10.6% | +$235.00 |
| $207.28 | +32.7% | +$235.00 |
| $241.82 | +54.8% | +$235.00 |
| $276.37 | +76.9% | +$235.00 |
| $310.91 | +99.0% | +$235.00 |
When traders use cash-secured put on AVY
Cash-secured puts on AVY earn premium while a trader waits to acquire AVY stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AVY.
AVY thesis for this cash-secured put
The market-implied 1-standard-deviation range for AVY extends from approximately $144.82 on the downside to $167.66 on the upside. A AVY cash-secured put lets a trader earn premium while waiting to acquire AVY 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 AVY IV rank near 46.26% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on AVY should anchor more to the directional view and the expected-move geometry. As a Industrials name, AVY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVY-specific events.
AVY 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. AVY positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVY alongside the broader basket even when AVY-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on AVY carry tail risk when realized volatility exceeds the implied move; review historical AVY earnings reactions and macro stress periods before sizing. Always rebuild the position from current AVY chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on AVY?
- A cash-secured put on AVY is the cash-secured put strategy applied to AVY (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 AVY stock trading near $156.24, the strikes shown on this page are snapped to the nearest listed AVY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AVY 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 AVY cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 25.50%), the computed maximum profit is $235.00 per contract and the computed maximum loss is -$14,764.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AVY cash-secured put?
- The breakeven for the AVY cash-secured put priced on this page is roughly $147.65 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 AVY market-implied 1-standard-deviation expected move is approximately 7.31%; 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 AVY?
- Cash-secured puts on AVY earn premium while a trader waits to acquire AVY stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AVY.
- How does current AVY implied volatility affect this cash-secured put?
- AVY ATM IV is at 25.50% with IV rank near 46.26%, 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.