CDNS Cash-Secured Put Strategy
CDNS (Cadence Design Systems, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Cadence Design Systems, Inc. provides software, hardware, services, and reusable integrated circuit (IC) design blocks worldwide. The company offers functional verification services, including emulation and prototyping hardware. Its functional verification offering consists of JasperGold, a formal verification platform; Xcelium, a parallel logic simulation platform; Palladium, an enterprise emulation platform; and Protium, a prototyping platform for chip verification. The company also provides digital IC design and sign off products, including Genus logic synthesis and Joules RTL power solutions, as well as Modus software solution to reduce systems-on-chip design-for-test time; physical implementation tools, such as place and route, optimization, and multiple patterning preparation; and signoff products to signoff the design as ready for silicon manufacturing. In addition, it offers custom IC design and simulation products to create schematic and physical representations of circuits down to the transistor level for analog, mixed-signal, custom digital, memory, and radio frequency designs; and system design and analysis products to develop printed circuit boards and IC packages, as well as to analyze electromagnetic, electro-thermal, and other multi-physics effects. Further, the company provides intellectual property (IP) products comprising pre-verified and customizable functional blocks to integrate into customer's ICs; and verification IP and memory models to emulate and model the expected behavior and interaction of standard industry system interface protocols.
CDNS (Cadence Design Systems, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $97.79B, a trailing P/E of 82.38, a beta of 1.13 versus the broader market, a 52-week range of 262.75-376.45, average daily share volume of 2.6M, a public-listing history dating back to 1987, approximately 13K full-time employees. These structural characteristics shape how CDNS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.13 places CDNS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 82.38 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 CDNS?
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 CDNS snapshot
As of May 15, 2026, spot at $348.44, ATM IV 42.82%, IV rank 53.25%, expected move 12.28%. The cash-secured put on CDNS 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 28-day expiry.
Why this cash-secured put structure on CDNS specifically: CDNS IV at 42.82% is mid-range versus its 1-year history, so the credit collected on a CDNS cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 12.28% (roughly $42.78 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 CDNS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CDNS should anchor to the underlying notional of $348.44 per share and to the trader's directional view on CDNS stock.
CDNS cash-secured put setup
The CDNS 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 CDNS near $348.44, 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 CDNS 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 CDNS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $330.00 | $9.00 |
CDNS cash-secured put risk and reward
- Net Premium / Debit
- +$900.00
- Max Profit (per contract)
- $900.00
- Max Loss (per contract)
- -$32,099.00
- Breakeven(s)
- $321.00
- Risk / Reward Ratio
- 0.028
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
CDNS cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on CDNS. 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% | -$32,099.00 |
| $77.05 | -77.9% | -$24,394.91 |
| $154.09 | -55.8% | -$16,690.82 |
| $231.13 | -33.7% | -$8,986.73 |
| $308.17 | -11.6% | -$1,282.64 |
| $385.21 | +10.6% | +$900.00 |
| $462.26 | +32.7% | +$900.00 |
| $539.30 | +54.8% | +$900.00 |
| $616.34 | +76.9% | +$900.00 |
| $693.38 | +99.0% | +$900.00 |
When traders use cash-secured put on CDNS
Cash-secured puts on CDNS earn premium while a trader waits to acquire CDNS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CDNS.
CDNS thesis for this cash-secured put
The market-implied 1-standard-deviation range for CDNS extends from approximately $305.66 on the downside to $391.22 on the upside. A CDNS cash-secured put lets a trader earn premium while waiting to acquire CDNS 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 CDNS IV rank near 53.25% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on CDNS should anchor more to the directional view and the expected-move geometry. As a Technology name, CDNS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CDNS-specific events.
CDNS 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. CDNS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CDNS alongside the broader basket even when CDNS-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on CDNS carry tail risk when realized volatility exceeds the implied move; review historical CDNS earnings reactions and macro stress periods before sizing. Always rebuild the position from current CDNS chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on CDNS?
- A cash-secured put on CDNS is the cash-secured put strategy applied to CDNS (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 CDNS stock trading near $348.44, the strikes shown on this page are snapped to the nearest listed CDNS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CDNS 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 CDNS cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 42.82%), the computed maximum profit is $900.00 per contract and the computed maximum loss is -$32,099.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CDNS cash-secured put?
- The breakeven for the CDNS cash-secured put priced on this page is roughly $321.00 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 CDNS market-implied 1-standard-deviation expected move is approximately 12.28%; 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 CDNS?
- Cash-secured puts on CDNS earn premium while a trader waits to acquire CDNS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CDNS.
- How does current CDNS implied volatility affect this cash-secured put?
- CDNS ATM IV is at 42.82% with IV rank near 53.25%, 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.