AXTA Cash-Secured Put Strategy
AXTA (Axalta Coating Systems Ltd.), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NYSE.
Axalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high-performance coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. It operates through two segments, Performance Coatings and Transportation Coatings. The company offers water and solvent-borne products and systems to repair damaged vehicles for independent body shops, multi-shop operators, and original equipment manufacturer (OEM) dealership body shops. It also provides functional and decorative liquid, and powder coatings used in various industrial applications, including architectural cladding and fittings, automotive coatings, general industrial, job coaters, energy solutions, HVAC, appliances, industrial wood, coil, and oil and gas pipelines; and coatings for building materials, cabinet, wood and luxury vinyl flooring, and furniture market under the Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Tufcote, and Ceranamel for liquid coatings; and Alesta, Nap-Gard, Abcite, Teodur, and Plascoat brands for powder coatings. In addition, the company develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles; and coatings systems for various commercial applications, including HDT, bus, and rail under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands. It also sells its product under the Audurra, Challenger, Chemophan, ColorNet, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Imron ExcelPro, Lutophen, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, Raptor, U-POL, and Vermeera brand names.
AXTA (Axalta Coating Systems Ltd.) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $5.97B, a trailing P/E of 16.16, a beta of 1.25 versus the broader market, a 52-week range of 24.937-35.72, average daily share volume of 2.6M, a public-listing history dating back to 2014, approximately 13K full-time employees. These structural characteristics shape how AXTA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.25 places AXTA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a cash-secured put on AXTA?
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 AXTA snapshot
As of May 15, 2026, spot at $26.88, ATM IV 40.20%, IV rank 25.47%, expected move 11.53%. The cash-secured put on AXTA 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 AXTA specifically: AXTA IV at 40.20% is on the cheap side of its 1-year range, which means a premium-selling AXTA cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 11.53% (roughly $3.10 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 AXTA expiries trade a higher absolute premium for lower per-day decay. Position sizing on AXTA should anchor to the underlying notional of $26.88 per share and to the trader's directional view on AXTA stock.
AXTA cash-secured put setup
The AXTA 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 AXTA near $26.88, the first option leg uses a $26.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AXTA 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 AXTA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $26.00 | $1.35 |
AXTA cash-secured put risk and reward
- Net Premium / Debit
- +$135.00
- Max Profit (per contract)
- $135.00
- Max Loss (per contract)
- -$2,464.00
- Breakeven(s)
- $24.65
- Risk / Reward Ratio
- 0.055
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
AXTA cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on AXTA. 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% | -$2,464.00 |
| $5.95 | -77.9% | -$1,869.78 |
| $11.89 | -55.7% | -$1,275.56 |
| $17.84 | -33.6% | -$681.34 |
| $23.78 | -11.5% | -$87.12 |
| $29.72 | +10.6% | +$135.00 |
| $35.66 | +32.7% | +$135.00 |
| $41.61 | +54.8% | +$135.00 |
| $47.55 | +76.9% | +$135.00 |
| $53.49 | +99.0% | +$135.00 |
When traders use cash-secured put on AXTA
Cash-secured puts on AXTA earn premium while a trader waits to acquire AXTA stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AXTA.
AXTA thesis for this cash-secured put
The market-implied 1-standard-deviation range for AXTA extends from approximately $23.78 on the downside to $29.98 on the upside. A AXTA cash-secured put lets a trader earn premium while waiting to acquire AXTA 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 AXTA IV rank near 25.47% 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 AXTA at 40.20%. As a Basic Materials name, AXTA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AXTA-specific events.
AXTA 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. AXTA positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AXTA alongside the broader basket even when AXTA-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on AXTA carry tail risk when realized volatility exceeds the implied move; review historical AXTA earnings reactions and macro stress periods before sizing. Always rebuild the position from current AXTA chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on AXTA?
- A cash-secured put on AXTA is the cash-secured put strategy applied to AXTA (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 AXTA stock trading near $26.88, the strikes shown on this page are snapped to the nearest listed AXTA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AXTA 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 AXTA cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 40.20%), the computed maximum profit is $135.00 per contract and the computed maximum loss is -$2,464.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AXTA cash-secured put?
- The breakeven for the AXTA cash-secured put priced on this page is roughly $24.65 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 AXTA market-implied 1-standard-deviation expected move is approximately 11.53%; 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 AXTA?
- Cash-secured puts on AXTA earn premium while a trader waits to acquire AXTA stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AXTA.
- How does current AXTA implied volatility affect this cash-secured put?
- AXTA ATM IV is at 40.20% with IV rank near 25.47%, 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.