CGNX Cash-Secured Put Strategy

CGNX (Cognex Corporation), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NASDAQ.

Cognex Corporation specializes in machine vision technology, offering solutions that interpret and process visual data to streamline and automate production and logistics operations globally. Their advanced vision systems enable the automated manufacturing and tracking of individual components or finished goods, such as mobile devices, pharmaceutical containers, and automotive parts. This is achieved by precisely locating, recognizing, examining, and gauging items throughout their journey from production to delivery. The company provides a comprehensive software portfolio, including VisionPro, a collection of patented tools for sophisticated development; QuickBuild, an intuitive platform enabling users to create vision applications via a graphical, flowchart interface; and its specialized deep learning vision software. Beyond software, their offerings encompass robust vision sensors for tasks like ensuring component presence and accurate sizing, alongside the versatile In-Sight series of integrated vision systems and sensors. These tools support a variety of critical inspection functions, such as pinpointing part locations, confirming identities, precise dimensioning, validating assembly, and guiding robotics.

CGNX (Cognex Corporation) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $10.92B, a trailing P/E of 62.84, a beta of 1.50 versus the broader market, a 52-week range of 34.6-72.88, average daily share volume of 2.3M, a public-listing history dating back to 1989, approximately 3K full-time employees. These structural characteristics shape how CGNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.50 indicates CGNX 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 62.84 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. CGNX 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 CGNX?

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.

CGNX snapshot

As of August 14, 2026, spot at $65.19, ATM IV 46.50%, IV rank 27.27%, expected move 13.33%. The cash-secured put on CGNX below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this cash-secured put structure on CGNX specifically: CGNX IV at 46.50% is on the cheap side of its 1-year range, which means a premium-selling CGNX cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 13.33% (roughly $8.69 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CGNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CGNX should anchor to the underlying notional of $65.19 per share and to the trader's directional view on CGNX stock.

CGNX cash-secured put setup

The CGNX 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 CGNX at $65.19 on that close, the first option leg uses a $61.93 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CGNX chain at a 35-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 CGNX shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$61.93N/A

CGNX 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.

CGNX cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on CGNX. 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 CGNX

Cash-secured puts on CGNX earn premium while a trader waits to acquire CGNX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CGNX.

CGNX thesis for this cash-secured put

The market-implied 1-standard-deviation range for CGNX extends from approximately $56.50 on the downside to $73.88 on the upside. A CGNX cash-secured put lets a trader earn premium while waiting to acquire CGNX 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 CGNX IV rank near 27.27% 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 CGNX at 46.50%. As a Technology name, CGNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CGNX-specific events.

CGNX 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. CGNX positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CGNX alongside the broader basket even when CGNX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on CGNX carry tail risk when realized volatility exceeds the implied move; review historical CGNX earnings reactions and macro stress periods before sizing. Always rebuild the position from current CGNX chain quotes before placing a trade.

Frequently asked questions

What is a cash-secured put on CGNX?
A cash-secured put on CGNX is the cash-secured put strategy applied to CGNX (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 CGNX stock at $65.19 on the most recent close, the strikes shown on this page are snapped to the nearest listed CGNX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CGNX 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 CGNX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 46.50%), 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 CGNX cash-secured put?
The breakeven for the CGNX cash-secured put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 CGNX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.33%; 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 CGNX?
Cash-secured puts on CGNX earn premium while a trader waits to acquire CGNX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CGNX.
How does current CGNX implied volatility affect this cash-secured put?
CGNX ATM IV is at 46.50% with IV rank near 27.27%, 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.

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