AX Cash-Secured Put Strategy
AX (Axos Financial, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
Axos Financial, Inc., together with its subsidiaries, provides consumer and business banking products in the United States. It operates through Banking Business and Securities Business segments. The company offers deposits products, including consumer and business checking, demand, savings, time deposit, money market, zero balance, and insured cash sweep accounts. It also provides single family, multifamily, and commercial mortgage loans; commercial real estate secured loans; commercial and industrial non-real estate, asset-backed, lines of credit, and term loans; automobile loans; fixed rate term unsecured loans; and other loans, such as structure settlements, small business administration consumer loans, and securities-backed loans. In addition, the company offers ACH origination, wire transfer, commercial check printing, business bill pay and account transfer; remote deposit capture, mobile deposit, lockbox, merchant, and online payment portal; concierge banking; mobile and text messaging banking; and payment services, as well as debit and credit cards, and digital wallets. Further, it provides disclosed clearing services; back-office services, such as record keeping, trade reporting, accounting, general back-office support, securities and margin lending, reorganization assistance, and custody of securities; and financing to brokerage customers.
AX (Axos Financial, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $4.71B, a trailing P/E of 9.84, a beta of 1.30 versus the broader market, a 52-week range of 67.5-101.92, average daily share volume of 414K, a public-listing history dating back to 2005, approximately 2K full-time employees. These structural characteristics shape how AX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.30 indicates AX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 9.84 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a cash-secured put on AX?
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 AX snapshot
As of May 15, 2026, spot at $83.08, ATM IV 34.20%, IV rank 27.44%, expected move 9.80%. The cash-secured put on AX 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 63-day expiry.
Why this cash-secured put structure on AX specifically: AX IV at 34.20% is on the cheap side of its 1-year range, which means a premium-selling AX cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.80% (roughly $8.15 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 AX expiries trade a higher absolute premium for lower per-day decay. Position sizing on AX should anchor to the underlying notional of $83.08 per share and to the trader's directional view on AX stock.
AX cash-secured put setup
The AX 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 AX near $83.08, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AX 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 AX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $80.00 | $3.25 |
AX cash-secured put risk and reward
- Net Premium / Debit
- +$325.00
- Max Profit (per contract)
- $325.00
- Max Loss (per contract)
- -$7,674.00
- Breakeven(s)
- $76.75
- Risk / Reward Ratio
- 0.042
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
AX cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on AX. 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% | -$7,674.00 |
| $18.38 | -77.9% | -$5,837.17 |
| $36.75 | -55.8% | -$4,000.33 |
| $55.12 | -33.7% | -$2,163.50 |
| $73.48 | -11.6% | -$326.66 |
| $91.85 | +10.6% | +$325.00 |
| $110.22 | +32.7% | +$325.00 |
| $128.59 | +54.8% | +$325.00 |
| $146.96 | +76.9% | +$325.00 |
| $165.33 | +99.0% | +$325.00 |
When traders use cash-secured put on AX
Cash-secured puts on AX earn premium while a trader waits to acquire AX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AX.
AX thesis for this cash-secured put
The market-implied 1-standard-deviation range for AX extends from approximately $74.93 on the downside to $91.23 on the upside. A AX cash-secured put lets a trader earn premium while waiting to acquire AX 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 AX IV rank near 27.44% 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 AX at 34.20%. As a Financial Services name, AX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AX-specific events.
AX 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. AX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AX alongside the broader basket even when AX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on AX carry tail risk when realized volatility exceeds the implied move; review historical AX earnings reactions and macro stress periods before sizing. Always rebuild the position from current AX chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on AX?
- A cash-secured put on AX is the cash-secured put strategy applied to AX (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 AX stock trading near $83.08, the strikes shown on this page are snapped to the nearest listed AX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AX 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 AX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 34.20%), the computed maximum profit is $325.00 per contract and the computed maximum loss is -$7,674.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AX cash-secured put?
- The breakeven for the AX cash-secured put priced on this page is roughly $76.75 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 AX market-implied 1-standard-deviation expected move is approximately 9.80%; 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 AX?
- Cash-secured puts on AX earn premium while a trader waits to acquire AX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AX.
- How does current AX implied volatility affect this cash-secured put?
- AX ATM IV is at 34.20% with IV rank near 27.44%, 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.