BKR Cash-Secured Put Strategy
BKR (Baker Hughes Company), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NASDAQ.
Baker Hughes Co. is a holding company, which engages in the provision of oilfield products, services, and digital solutions. It operates through the Oilfield Services and Equipment (OFSE) and industrial and Energy Technology (IET) segments. The OFSE segment designs and manufactures products and provides services for onshore and offshore oilfield operations. The IET segment combines expertise, technologies, and services for industrial and energy customers including on and off-shore, LNG, pipeline and gas storage, refining, petrochemical, distributed gas, flow and process control, and industrial segments such as nuclear, aviation, automotive, marine, food and beverage, mining, cement and utilities. The company was founded in April 1987 and is headquartered in Houston, TX.
BKR (Baker Hughes Company) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $63.81B, a trailing P/E of 20.57, a beta of 0.96 versus the broader market, a 52-week range of 41.96-70.41, average daily share volume of 8.6M, a public-listing history dating back to 1987, approximately 54K full-time employees. These structural characteristics shape how BKR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.96 places BKR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BKR 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 BKR?
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.
BKR snapshot
As of August 14, 2026, spot at $64.68, ATM IV 31.00%, IV rank 13.35%, expected move 8.89%. The cash-secured put on BKR 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 BKR specifically: BKR IV at 31.00% is on the cheap side of its 1-year range, which means a premium-selling BKR cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.89% (roughly $5.75 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 BKR expiries trade a higher absolute premium for lower per-day decay. Position sizing on BKR should anchor to the underlying notional of $64.68 per share and to the trader's directional view on BKR stock.
BKR cash-secured put setup
The BKR 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 BKR at $64.68 on that close, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BKR 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 BKR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $60.00 | $0.78 |
BKR cash-secured put risk and reward
- Net Premium / Debit
- +$77.50
- Max Profit (per contract)
- $77.50
- Max Loss (per contract)
- -$5,921.50
- Breakeven(s)
- $59.23
- Risk / Reward Ratio
- 0.013
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
BKR cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on BKR. 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% | -$5,921.50 |
| $14.31 | -77.9% | -$4,491.50 |
| $28.61 | -55.8% | -$3,061.50 |
| $42.91 | -33.7% | -$1,631.50 |
| $57.21 | -11.5% | -$201.50 |
| $71.51 | +10.6% | +$77.50 |
| $85.81 | +32.7% | +$77.50 |
| $100.11 | +54.8% | +$77.50 |
| $114.41 | +76.9% | +$77.50 |
| $128.71 | +99.0% | +$77.50 |
When traders use cash-secured put on BKR
Cash-secured puts on BKR earn premium while a trader waits to acquire BKR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning BKR.
BKR thesis for this cash-secured put
The market-implied 1-standard-deviation range for BKR extends from approximately $58.93 on the downside to $70.43 on the upside. A BKR cash-secured put lets a trader earn premium while waiting to acquire BKR 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 BKR IV rank near 13.35% 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 BKR at 31.00%. As a Energy name, BKR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BKR-specific events.
BKR 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. BKR positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BKR alongside the broader basket even when BKR-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on BKR carry tail risk when realized volatility exceeds the implied move; review historical BKR earnings reactions and macro stress periods before sizing. Always rebuild the position from current BKR chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on BKR?
- A cash-secured put on BKR is the cash-secured put strategy applied to BKR (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 BKR stock at $64.68 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BKR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BKR 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 BKR cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 31.00%), the computed maximum profit is $77.50 per contract and the computed maximum loss is -$5,921.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BKR cash-secured put?
- The breakeven for the BKR cash-secured put priced on this page is roughly $59.23 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 BKR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.89%; 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 BKR?
- Cash-secured puts on BKR earn premium while a trader waits to acquire BKR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning BKR.
- How does current BKR implied volatility affect this cash-secured put?
- BKR ATM IV is at 31.00% with IV rank near 13.35%, 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.