CENX Cash-Secured Put Strategy
CENX (Century Aluminum Company), in the Basic Materials sector, (Aluminum industry), listed on NASDAQ.
Century Aluminum Company, together with its subsidiaries, produces standard-grade and value-added primary aluminum products in the United States and Iceland. It also owns and operates a carbon anode production facility in the Netherlands. The company was incorporated in 1981 and is headquartered in Chicago, Illinois.
CENX (Century Aluminum Company) trades in the Basic Materials sector, specifically Aluminum, with a market capitalization of approximately $6.37B, a trailing P/E of 18.22, a beta of 1.92 versus the broader market, a 52-week range of 15.13-68.69, average daily share volume of 2.2M, a public-listing history dating back to 1996, approximately 3K full-time employees. These structural characteristics shape how CENX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.92 indicates CENX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a cash-secured put on CENX?
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 CENX snapshot
As of May 15, 2026, spot at $57.06, ATM IV 75.70%, IV rank 49.78%, expected move 21.70%. The cash-secured put on CENX 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 CENX specifically: CENX IV at 75.70% is mid-range versus its 1-year history, so the credit collected on a CENX cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 21.70% (roughly $12.38 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 CENX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CENX should anchor to the underlying notional of $57.06 per share and to the trader's directional view on CENX stock.
CENX cash-secured put setup
The CENX 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 CENX near $57.06, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CENX 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 CENX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $55.00 | $4.15 |
CENX cash-secured put risk and reward
- Net Premium / Debit
- +$415.00
- Max Profit (per contract)
- $415.00
- Max Loss (per contract)
- -$5,084.00
- Breakeven(s)
- $50.85
- Risk / Reward Ratio
- 0.082
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
CENX cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on CENX. 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% | -$5,084.00 |
| $12.63 | -77.9% | -$3,822.48 |
| $25.24 | -55.8% | -$2,560.96 |
| $37.86 | -33.7% | -$1,299.45 |
| $50.47 | -11.5% | -$37.93 |
| $63.09 | +10.6% | +$415.00 |
| $75.70 | +32.7% | +$415.00 |
| $88.32 | +54.8% | +$415.00 |
| $100.93 | +76.9% | +$415.00 |
| $113.55 | +99.0% | +$415.00 |
When traders use cash-secured put on CENX
Cash-secured puts on CENX earn premium while a trader waits to acquire CENX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CENX.
CENX thesis for this cash-secured put
The market-implied 1-standard-deviation range for CENX extends from approximately $44.68 on the downside to $69.44 on the upside. A CENX cash-secured put lets a trader earn premium while waiting to acquire CENX 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 CENX IV rank near 49.78% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on CENX should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, CENX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CENX-specific events.
CENX 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. CENX positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CENX alongside the broader basket even when CENX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on CENX carry tail risk when realized volatility exceeds the implied move; review historical CENX earnings reactions and macro stress periods before sizing. Always rebuild the position from current CENX chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on CENX?
- A cash-secured put on CENX is the cash-secured put strategy applied to CENX (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 CENX stock trading near $57.06, the strikes shown on this page are snapped to the nearest listed CENX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CENX 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 CENX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 75.70%), the computed maximum profit is $415.00 per contract and the computed maximum loss is -$5,084.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CENX cash-secured put?
- The breakeven for the CENX cash-secured put priced on this page is roughly $50.85 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 CENX market-implied 1-standard-deviation expected move is approximately 21.70%; 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 CENX?
- Cash-secured puts on CENX earn premium while a trader waits to acquire CENX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CENX.
- How does current CENX implied volatility affect this cash-secured put?
- CENX ATM IV is at 75.70% with IV rank near 49.78%, 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.