How are CHE 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 CHE cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 23.90%), the computed maximum profit is $522.50 per contract and the computed maximum loss is -$40,476.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CHE cash-secured put?

The breakeven for the CHE cash-secured put priced on this page is roughly $404.78 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 CHE market-implied 1-standard-deviation expected move is approximately 6.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CHE implied volatility affect this cash-secured put?

CHE ATM IV is at 23.90% with IV rank near 19.01%, 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.

CHE Cash-Secured Put Strategy

CHE (Chemed Corporation), in the Healthcare sector, (Medical - Care Facilities industry), listed on NYSE.

Chemed Corporation provides hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers primarily in the United States. The company operates in two segments, VITAS and Roto-Rooter. It offers plumbing, drain cleaning, excavation, water restoration, and other related services to residential and commercial customers through company-owned branches, independent contractors, and franchisees. The company was incorporated in 1970 and is headquartered in Cincinnati, Ohio.

CHE (Chemed Corporation) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $5.63B, a trailing P/E of 22.32, a beta of 0.54 versus the broader market, a 52-week range of 365.21-583.96, average daily share volume of 271K, a public-listing history dating back to 1973, approximately 16K full-time employees. These structural characteristics shape how CHE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.54 indicates CHE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CHE 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 CHE?

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 CHE snapshot

As of May 15, 2026, spot at $434.70, ATM IV 23.90%, IV rank 19.01%, expected move 6.85%. The cash-secured put on CHE 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 CHE specifically: CHE IV at 23.90% is on the cheap side of its 1-year range, which means a premium-selling CHE cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.85% (roughly $29.79 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 CHE expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHE should anchor to the underlying notional of $434.70 per share and to the trader's directional view on CHE stock.

CHE cash-secured put setup

The CHE 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 CHE near $434.70, the first option leg uses a $410.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHE 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 CHE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$410.00	$5.23

CHE cash-secured put risk and reward

Net Premium / Debit: +$522.50
Max Profit (per contract): $522.50
Max Loss (per contract): -$40,476.50
Breakeven(s): $404.78
Risk / Reward Ratio: 0.013

Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.

CHE cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on CHE. 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%	-$40,476.50
$96.12	-77.9%	-$30,865.15
$192.24	-55.8%	-$21,253.81
$288.35	-33.7%	-$11,642.46
$384.46	-11.6%	-$2,031.11
$480.58	+10.6%	+$522.50
$576.69	+32.7%	+$522.50
$672.80	+54.8%	+$522.50
$768.92	+76.9%	+$522.50
$865.03	+99.0%	+$522.50

When traders use cash-secured put on CHE

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

CHE thesis for this cash-secured put

The market-implied 1-standard-deviation range for CHE extends from approximately $404.91 on the downside to $464.49 on the upside. A CHE cash-secured put lets a trader earn premium while waiting to acquire CHE 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 CHE IV rank near 19.01% 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 CHE at 23.90%. As a Healthcare name, CHE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHE-specific events.

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

Frequently asked questions

What is a cash-secured put on CHE?: A cash-secured put on CHE is the cash-secured put strategy applied to CHE (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 CHE stock trading near $434.70, the strikes shown on this page are snapped to the nearest listed CHE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CHE 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 CHE cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 23.90%), the computed maximum profit is $522.50 per contract and the computed maximum loss is -$40,476.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CHE cash-secured put?: The breakeven for the CHE cash-secured put priced on this page is roughly $404.78 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 CHE market-implied 1-standard-deviation expected move is approximately 6.85%; 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 CHE?: Cash-secured puts on CHE earn premium while a trader waits to acquire CHE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CHE.
How does current CHE implied volatility affect this cash-secured put?: CHE ATM IV is at 23.90% with IV rank near 19.01%, 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.