BURL Cash-Secured Put Strategy
BURL (Burlington Stores, Inc.), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NYSE.
Burlington Stores, Inc. operates as a prominent retail chain across the United States, offering a diverse selection of branded apparel and other consumer products. Its merchandise is heavily focused on current fashion trends, providing items such as women's ready-to-wear, men's clothing, youth apparel, footwear, accessories, and outerwear. Additionally, the company stocks toys, gifts, and various products for the home, baby, and beauty categories. As of January 29, 2022, Burlington Stores, Inc. maintained an extensive network of 837 outlets under its flagship Burlington Stores brand, two Cohoes Fashions locations, and a single MJM Designer Shoes store. These establishments are situated throughout 45 U.S. states and Puerto Rico. The enterprise was founded in 1972 and is headquartered in Burlington, New Jersey.
BURL (Burlington Stores, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $21.88B, a trailing P/E of 35.74, a beta of 1.47 versus the broader market, a 52-week range of 240.49-378.33, average daily share volume of 745K, a public-listing history dating back to 2013, approximately 83K full-time employees. These structural characteristics shape how BURL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.47 indicates BURL 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 35.74 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 BURL?
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.
BURL snapshot
As of August 14, 2026, spot at $349.77, ATM IV 45.21%, IV rank 68.83%, expected move 12.96%. The cash-secured put on BURL 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 28-day expiry.
Why this cash-secured put structure on BURL specifically: BURL IV at 45.21% is mid-range versus its 1-year history, so the credit collected on a BURL cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 12.96% (roughly $45.34 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BURL expiries trade a higher absolute premium for lower per-day decay. Position sizing on BURL should anchor to the underlying notional of $349.77 per share and to the trader's directional view on BURL stock.
BURL cash-secured put setup
The BURL 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 BURL at $349.77 on that close, the first option leg uses a $330.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BURL chain at a 28-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 BURL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $330.00 | $8.25 |
BURL cash-secured put risk and reward
- Net Premium / Debit
- +$825.00
- Max Profit (per contract)
- $825.00
- Max Loss (per contract)
- -$32,174.00
- Breakeven(s)
- $321.75
- Risk / Reward Ratio
- 0.026
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
BURL cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on BURL. 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% | -$32,174.00 |
| $77.34 | -77.9% | -$24,440.50 |
| $154.68 | -55.8% | -$16,707.01 |
| $232.01 | -33.7% | -$8,973.51 |
| $309.35 | -11.6% | -$1,240.01 |
| $386.68 | +10.6% | +$825.00 |
| $464.02 | +32.7% | +$825.00 |
| $541.35 | +54.8% | +$825.00 |
| $618.69 | +76.9% | +$825.00 |
| $696.02 | +99.0% | +$825.00 |
When traders use cash-secured put on BURL
Cash-secured puts on BURL earn premium while a trader waits to acquire BURL stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning BURL.
BURL thesis for this cash-secured put
The market-implied 1-standard-deviation range for BURL extends from approximately $304.43 on the downside to $395.11 on the upside. A BURL cash-secured put lets a trader earn premium while waiting to acquire BURL 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 BURL IV rank near 68.83% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on BURL should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, BURL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BURL-specific events.
BURL 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. BURL positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BURL alongside the broader basket even when BURL-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on BURL carry tail risk when realized volatility exceeds the implied move; review historical BURL earnings reactions and macro stress periods before sizing. Always rebuild the position from current BURL chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on BURL?
- A cash-secured put on BURL is the cash-secured put strategy applied to BURL (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 BURL stock at $349.77 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BURL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BURL 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 BURL cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 45.21%), the computed maximum profit is $825.00 per contract and the computed maximum loss is -$32,174.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BURL cash-secured put?
- The breakeven for the BURL cash-secured put priced on this page is roughly $321.75 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 BURL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.96%; 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 BURL?
- Cash-secured puts on BURL earn premium while a trader waits to acquire BURL stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning BURL.
- How does current BURL implied volatility affect this cash-secured put?
- BURL ATM IV is at 45.21% with IV rank near 68.83%, 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.