AXON Cash-Secured Put Strategy
AXON (Axon Enterprise, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NASDAQ.
Axon Enterprise, Inc., founded in 1993 and headquartered in Scottsdale, Arizona, was previously known as TASER International, Inc. until its rebranding in April 2017. The company specializes in the development, production, and sale of conducted energy devices (CEDs) marketed under its well-known TASER brand, catering to both domestic and international clients. Axon's operations are divided into two primary segments: TASER, and Software and Sensors. In addition to its signature TASER devices, such as the TASER 7, X26P, X2, and consumer models, along with their corresponding cartridges, Axon offers an extensive portfolio of hardware and cloud-based software. These solutions are designed to equip law enforcement agencies with the means to capture, securely archive, manage, share, and analyze video and other digital evidence. Key products in this category include on-officer body cameras, Axon Fleet in-car systems, the Axon Evidence digital evidence management platform, Axon Signal-enabled devices, extended hardware warranties, and vital accessories like docks, cartridges, and batteries.
AXON (Axon Enterprise, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $37.47B, a trailing P/E of 180.64, a beta of 1.42 versus the broader market, a 52-week range of 339.01-885.92, average daily share volume of 1.2M, a public-listing history dating back to 2001, approximately 5K full-time employees. These structural characteristics shape how AXON stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.42 indicates AXON 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 180.64 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.
What is a cash-secured put on AXON?
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 AXON snapshot
As of June 30, 2026, spot at $555.46, ATM IV 65.06%, IV rank 57.63%, expected move 18.65%. The cash-secured put on AXON 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 31-day expiry.
Why this cash-secured put structure on AXON specifically: AXON IV at 65.06% is mid-range versus its 1-year history, so the credit collected on a AXON cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 18.65% (roughly $103.60 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AXON expiries trade a higher absolute premium for lower per-day decay. Position sizing on AXON should anchor to the underlying notional of $555.46 per share and to the trader's directional view on AXON stock.
AXON cash-secured put setup
The AXON 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 AXON near $555.46, the first option leg uses a $530.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AXON chain at a 31-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 AXON shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $530.00 | $29.20 |
AXON cash-secured put risk and reward
- Net Premium / Debit
- +$2,920.00
- Max Profit (per contract)
- $2,920.00
- Max Loss (per contract)
- -$50,079.00
- Breakeven(s)
- $500.80
- Risk / Reward Ratio
- 0.058
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
AXON cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on AXON. 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% | -$50,079.00 |
| $122.82 | -77.9% | -$37,797.58 |
| $245.64 | -55.8% | -$25,516.17 |
| $368.45 | -33.7% | -$13,234.75 |
| $491.27 | -11.6% | -$953.33 |
| $614.08 | +10.6% | +$2,920.00 |
| $736.90 | +32.7% | +$2,920.00 |
| $859.71 | +54.8% | +$2,920.00 |
| $982.52 | +76.9% | +$2,920.00 |
| $1,105.34 | +99.0% | +$2,920.00 |
When traders use cash-secured put on AXON
Cash-secured puts on AXON earn premium while a trader waits to acquire AXON stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AXON.
AXON thesis for this cash-secured put
The market-implied 1-standard-deviation range for AXON extends from approximately $451.86 on the downside to $659.06 on the upside. A AXON cash-secured put lets a trader earn premium while waiting to acquire AXON 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 AXON IV rank near 57.63% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on AXON should anchor more to the directional view and the expected-move geometry. As a Industrials name, AXON options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AXON-specific events.
AXON 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. AXON positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AXON alongside the broader basket even when AXON-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on AXON carry tail risk when realized volatility exceeds the implied move; review historical AXON earnings reactions and macro stress periods before sizing. Always rebuild the position from current AXON chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on AXON?
- A cash-secured put on AXON is the cash-secured put strategy applied to AXON (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 AXON stock trading near $555.46, the strikes shown on this page are snapped to the nearest listed AXON chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AXON 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 AXON cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 65.06%), the computed maximum profit is $2,920.00 per contract and the computed maximum loss is -$50,079.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AXON cash-secured put?
- The breakeven for the AXON cash-secured put priced on this page is roughly $500.80 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 AXON market-implied 1-standard-deviation expected move is approximately 18.65%; 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 AXON?
- Cash-secured puts on AXON earn premium while a trader waits to acquire AXON stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AXON.
- How does current AXON implied volatility affect this cash-secured put?
- AXON ATM IV is at 65.06% with IV rank near 57.63%, 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.