BKR Cash-Secured Put Strategy
BKR (Baker Hughes Company), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NASDAQ.
Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain worldwide. It operates through four segments: Oilfield Services (OFS), Oilfield Equipment (OFE), Turbomachinery & Process Solutions (TPS), and Digital Solutions (DS). The OFS segment offers exploration, drilling, wireline, evaluation, completion, production, and intervention services; and drilling and completions fluids, wireline services, downhole completion tools and systems, wellbore intervention tools and services, pressure pumping systems, oilfield and industrial chemicals, and artificial lift technologies for oil and natural gas, and oilfield service companies. The OFE segment provides subsea and surface wellheads, pressure control and production systems and services, flexible pipe systems for offshore and onshore applications, and life-of-field solutions, including well intervention and decommissioning solutions; and services related to onshore and offshore drilling and production operations. The TPS segment provides equipment and related services for mechanical-drive, compression, and power-generation applications across the oil and gas industry. Its product portfolio includes drivers, compressors, and turnkey solutions; and pumps, valves, and compressed natural gas and small-scale liquefied natural gas solutions.
BKR (Baker Hughes Company) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $64.89B, a trailing P/E of 20.78, a beta of 0.97 versus the broader market, a 52-week range of 35.83-70.41, average daily share volume of 9.2M, a public-listing history dating back to 1987, approximately 57K 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 0.97 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.
Current BKR snapshot
As of May 15, 2026, spot at $64.16, ATM IV 35.70%, IV rank 56.42%, expected move 10.23%. The cash-secured put on BKR 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 BKR specifically: BKR IV at 35.70% is mid-range versus its 1-year history, so the credit collected on a BKR cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.23% (roughly $6.57 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 BKR expiries trade a higher absolute premium for lower per-day decay. Position sizing on BKR should anchor to the underlying notional of $64.16 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 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BKR near $64.16, 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 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 BKR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $60.00 | $1.15 |
BKR cash-secured put risk and reward
- Net Premium / Debit
- +$115.00
- Max Profit (per contract)
- $115.00
- Max Loss (per contract)
- -$5,884.00
- Breakeven(s)
- $58.85
- Risk / Reward Ratio
- 0.020
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% | -$5,884.00 |
| $14.20 | -77.9% | -$4,465.50 |
| $28.38 | -55.8% | -$3,046.99 |
| $42.57 | -33.7% | -$1,628.49 |
| $56.75 | -11.5% | -$209.99 |
| $70.94 | +10.6% | +$115.00 |
| $85.12 | +32.7% | +$115.00 |
| $99.31 | +54.8% | +$115.00 |
| $113.49 | +76.9% | +$115.00 |
| $127.68 | +99.0% | +$115.00 |
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 $57.59 on the downside to $70.73 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 56.42% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on BKR should anchor more to the directional view and the expected-move geometry. 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 trading near $64.16, the strikes shown on this page are snapped to the nearest listed BKR chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 35.70%), the computed maximum profit is $115.00 per contract and the computed maximum loss is -$5,884.00 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 $58.85 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 BKR market-implied 1-standard-deviation expected move is approximately 10.23%; 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 35.70% with IV rank near 56.42%, 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.