CGAU Cash-Secured Put Strategy
CGAU (Centerra Gold Inc.), in the Basic Materials sector, (Gold industry), listed on NYSE.
Centerra Gold Inc. is an enterprise engaged in gold mining, with activities encompassing the acquisition, exploration, development, and operation of gold, copper, and molybdenum deposits. Its geographical reach spans North America, Turkey, and other international regions. Prominent among its ventures are the Mount Milligan gold-copper mine, wholly owned and located in British Columbia, Canada, and the Öksüt Gold Mine in Turkey. This company was established in 2002 and operates from its corporate headquarters in Toronto, Canada.
CGAU (Centerra Gold Inc.) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $3.22B, a trailing P/E of 5.09, a beta of 1.54 versus the broader market, a 52-week range of 6.71-21.17, average daily share volume of 1.6M, a public-listing history dating back to 2008, approximately 1K full-time employees. These structural characteristics shape how CGAU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.54 indicates CGAU 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 5.09 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. CGAU 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 CGAU?
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 CGAU snapshot
As of June 30, 2026, spot at $15.91, ATM IV 50.60%, IV rank 6.67%, expected move 14.51%. The cash-secured put on CGAU 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 17-day expiry.
Why this cash-secured put structure on CGAU specifically: CGAU IV at 50.60% is on the cheap side of its 1-year range, which means a premium-selling CGAU cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 14.51% (roughly $2.31 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CGAU expiries trade a higher absolute premium for lower per-day decay. Position sizing on CGAU should anchor to the underlying notional of $15.91 per share and to the trader's directional view on CGAU stock.
CGAU cash-secured put setup
The CGAU 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 CGAU near $15.91, the first option leg uses a $15.11 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CGAU chain at a 17-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 CGAU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $15.11 | N/A |
CGAU cash-secured put risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
CGAU cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on CGAU. 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.
When traders use cash-secured put on CGAU
Cash-secured puts on CGAU earn premium while a trader waits to acquire CGAU stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CGAU.
CGAU thesis for this cash-secured put
The market-implied 1-standard-deviation range for CGAU extends from approximately $13.60 on the downside to $18.22 on the upside. A CGAU cash-secured put lets a trader earn premium while waiting to acquire CGAU 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 CGAU IV rank near 6.67% 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 CGAU at 50.60%. As a Basic Materials name, CGAU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CGAU-specific events.
CGAU 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. CGAU positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CGAU alongside the broader basket even when CGAU-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on CGAU carry tail risk when realized volatility exceeds the implied move; review historical CGAU earnings reactions and macro stress periods before sizing. Always rebuild the position from current CGAU chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on CGAU?
- A cash-secured put on CGAU is the cash-secured put strategy applied to CGAU (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 CGAU stock trading near $15.91, the strikes shown on this page are snapped to the nearest listed CGAU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CGAU 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 CGAU cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 50.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CGAU cash-secured put?
- The breakeven for the CGAU cash-secured put priced on this page is no defined breakeven on the modeled curve 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 CGAU market-implied 1-standard-deviation expected move is approximately 14.51%; 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 CGAU?
- Cash-secured puts on CGAU earn premium while a trader waits to acquire CGAU stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CGAU.
- How does current CGAU implied volatility affect this cash-secured put?
- CGAU ATM IV is at 50.60% with IV rank near 6.67%, 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.