How are CP 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 CP cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.70%), the computed maximum profit is $77.50 per contract and the computed maximum loss is -$8,921.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

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

The breakeven for the CP cash-secured put priced on this page is roughly $89.23 at expiration, derived from the August 14, 2026 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 CP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

CP ATM IV is at 18.70% with IV rank near 1.07%, 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.

CP Cash-Secured Put Strategy

CP (Canadian Pacific Kansas City Ltd.), in the Industrials sector, (Railroads industry), listed on NYSE.

Specializing in railway freight transportation, Canadian Pacific Kansas City Ltd. operates an extensive rail network connecting Canada, the United States, and Mexico. The company, headquartered in Calgary, Canada, began its operations on June 22, 2001.

CP (Canadian Pacific Kansas City Ltd.) trades in the Industrials sector, specifically Railroads, with a market capitalization of approximately $81.48B, a trailing P/E of 27.08, a beta of 1.22 versus the broader market, a 52-week range of 68.42-93.95, average daily share volume of 2.9M, a public-listing history dating back to 1983, approximately 20K full-time employees. These structural characteristics shape how CP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.22 places CP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CP 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 CP?

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.

CP snapshot

As of August 14, 2026, spot at $93.61, ATM IV 18.70%, IV rank 1.07%, expected move 5.36%. The cash-secured put on CP below is built from the August 14, 2026 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 CP specifically: CP IV at 18.70% is on the cheap side of its 1-year range, which means a premium-selling CP cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.36% (roughly $5.02 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 CP expiries trade a higher absolute premium for lower per-day decay. Position sizing on CP should anchor to the underlying notional of $93.61 per share and to the trader's directional view on CP stock.

CP cash-secured put setup

The CP cash-secured put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CP at $93.61 on that close, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CP 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 CP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$90.00	$0.78

CP cash-secured put risk and reward

Net Premium / Debit: +$77.50
Max Profit (per contract): $77.50
Max Loss (per contract): -$8,921.50
Breakeven(s): $89.23
Risk / Reward Ratio: 0.009

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

CP cash-secured put payoff curve

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

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$8,921.50
$20.71	-77.9%	-$6,851.84
$41.40	-55.8%	-$4,782.18
$62.10	-33.7%	-$2,712.53
$82.80	-11.6%	-$642.87
$103.49	+10.6%	+$77.50
$124.19	+32.7%	+$77.50
$144.89	+54.8%	+$77.50
$165.58	+76.9%	+$77.50
$186.28	+99.0%	+$77.50

When traders use cash-secured put on CP

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

CP thesis for this cash-secured put

The market-implied 1-standard-deviation range for CP extends from approximately $88.59 on the downside to $98.63 on the upside. A CP cash-secured put lets a trader earn premium while waiting to acquire CP 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 CP IV rank near 1.07% 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 CP at 18.70%. As a Industrials name, CP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CP-specific events.

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

Frequently asked questions

What is a cash-secured put on CP?: A cash-secured put on CP is the cash-secured put strategy applied to CP (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 CP stock at $93.61 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CP chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CP 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 CP cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.70%), the computed maximum profit is $77.50 per contract and the computed maximum loss is -$8,921.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CP cash-secured put?: The breakeven for the CP cash-secured put priced on this page is roughly $89.23 at expiration, derived from the August 14, 2026 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 CP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.36%; 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 CP?: Cash-secured puts on CP earn premium while a trader waits to acquire CP stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CP.
How does current CP implied volatility affect this cash-secured put?: CP ATM IV is at 18.70% with IV rank near 1.07%, 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.