CMG Cash-Secured Put Strategy
CMG (Chipotle Mexican Grill, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NYSE.
Chipotle Mexican Grill, Inc., together with its subsidiaries, owns and operates Chipotle Mexican Grill restaurants. As of February 15, 2022, it owned and operated approximately 3,000 restaurants in the United States, Canada, the United Kingdom, France, Germany, and rest of Europe. The company was founded in 1993 and is headquartered in Newport Beach, California.
CMG (Chipotle Mexican Grill, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $41.21B, a trailing P/E of 28.72, a beta of 1.03 versus the broader market, a 52-week range of 29.75-58.42, average daily share volume of 16.2M, a public-listing history dating back to 2006, approximately 131K full-time employees. These structural characteristics shape how CMG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.03 places CMG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a cash-secured put on CMG?
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 CMG snapshot
As of May 15, 2026, spot at $32.66, ATM IV 36.00%, IV rank 31.98%, expected move 10.32%. The cash-secured put on CMG 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 CMG specifically: CMG IV at 36.00% is mid-range versus its 1-year history, so the credit collected on a CMG cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.32% (roughly $3.37 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 CMG expiries trade a higher absolute premium for lower per-day decay. Position sizing on CMG should anchor to the underlying notional of $32.66 per share and to the trader's directional view on CMG stock.
CMG cash-secured put setup
The CMG 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 CMG near $32.66, the first option leg uses a $31.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CMG 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 CMG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $31.00 | $0.61 |
CMG cash-secured put risk and reward
- Net Premium / Debit
- +$61.00
- Max Profit (per contract)
- $61.00
- Max Loss (per contract)
- -$3,038.00
- Breakeven(s)
- $30.39
- Risk / Reward Ratio
- 0.020
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
CMG cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on CMG. 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% | -$3,038.00 |
| $7.23 | -77.9% | -$2,315.98 |
| $14.45 | -55.8% | -$1,593.96 |
| $21.67 | -33.6% | -$871.94 |
| $28.89 | -11.5% | -$149.92 |
| $36.11 | +10.6% | +$61.00 |
| $43.33 | +32.7% | +$61.00 |
| $50.55 | +54.8% | +$61.00 |
| $57.77 | +76.9% | +$61.00 |
| $64.99 | +99.0% | +$61.00 |
When traders use cash-secured put on CMG
Cash-secured puts on CMG earn premium while a trader waits to acquire CMG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CMG.
CMG thesis for this cash-secured put
The market-implied 1-standard-deviation range for CMG extends from approximately $29.29 on the downside to $36.03 on the upside. A CMG cash-secured put lets a trader earn premium while waiting to acquire CMG 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 CMG IV rank near 31.98% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on CMG should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, CMG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CMG-specific events.
CMG 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. CMG positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CMG alongside the broader basket even when CMG-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on CMG carry tail risk when realized volatility exceeds the implied move; review historical CMG earnings reactions and macro stress periods before sizing. Always rebuild the position from current CMG chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on CMG?
- A cash-secured put on CMG is the cash-secured put strategy applied to CMG (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 CMG stock trading near $32.66, the strikes shown on this page are snapped to the nearest listed CMG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CMG 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 CMG cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 36.00%), the computed maximum profit is $61.00 per contract and the computed maximum loss is -$3,038.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CMG cash-secured put?
- The breakeven for the CMG cash-secured put priced on this page is roughly $30.39 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 CMG market-implied 1-standard-deviation expected move is approximately 10.32%; 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 CMG?
- Cash-secured puts on CMG earn premium while a trader waits to acquire CMG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CMG.
- How does current CMG implied volatility affect this cash-secured put?
- CMG ATM IV is at 36.00% with IV rank near 31.98%, 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.