CPS Cash-Secured Put Strategy
CPS (Cooper-Standard Holdings Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NYSE.
Cooper-Standard Holdings Inc., through its subsidiary, Cooper-Standard Automotive Inc., designs, manufactures, and sells sealing, fuel and brake delivery, and fluid transfer systems. The company's sealing systems include obstacle detection sensor systems, dynamic seals, variable extrusion systems, static seals, specialty sealing products, encapsulated glasses, stainless steel trims, FlushSeal systems, and textured surfaces with cloth appearance. Its fuel and brake delivery systems comprise chassis and tank fuel lines and bundles, direct injection and port fuel rails, metallic brake lines and bundles, tube coatings, quick connects, low oligomer multi-layer convoluted tubes, and brake jounce lines. The company's fluid transfer systems consist of heater/coolant hoses, turbo charger hoses, quick connects, charged air cooler ducts/assemblies, DPF and SCR emission lines, secondary air hoses, degas tanks, brake and clutch hoses, air intake and charge systems, transmission oil cooling hoses, and multilayer tubing for glycol thermal management. Its products are primarily used in passenger vehicles and light trucks that are manufactured by automotive original equipment manufacturers and replacement markets. The company operates in the United States, Mexico, China, Poland, Canada, Germany, France, and internationally.
CPS (Cooper-Standard Holdings Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $516.3M, a beta of 2.01 versus the broader market, a 52-week range of 19.32-47.98, average daily share volume of 224K, a public-listing history dating back to 2010, approximately 22K full-time employees. These structural characteristics shape how CPS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.01 indicates CPS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a cash-secured put on CPS?
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 CPS snapshot
As of May 15, 2026, spot at $27.13, ATM IV 64.40%, IV rank 5.92%, expected move 18.46%. The cash-secured put on CPS 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 CPS specifically: CPS IV at 64.40% is on the cheap side of its 1-year range, which means a premium-selling CPS cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 18.46% (roughly $5.01 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 CPS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPS should anchor to the underlying notional of $27.13 per share and to the trader's directional view on CPS stock.
CPS cash-secured put setup
The CPS 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 CPS near $27.13, the first option leg uses a $25.77 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPS 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 CPS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $25.77 | N/A |
CPS 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.
CPS cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on CPS. 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 CPS
Cash-secured puts on CPS earn premium while a trader waits to acquire CPS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CPS.
CPS thesis for this cash-secured put
The market-implied 1-standard-deviation range for CPS extends from approximately $22.12 on the downside to $32.14 on the upside. A CPS cash-secured put lets a trader earn premium while waiting to acquire CPS 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 CPS IV rank near 5.92% 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 CPS at 64.40%. As a Consumer Cyclical name, CPS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPS-specific events.
CPS 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. CPS positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CPS alongside the broader basket even when CPS-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on CPS carry tail risk when realized volatility exceeds the implied move; review historical CPS earnings reactions and macro stress periods before sizing. Always rebuild the position from current CPS chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on CPS?
- A cash-secured put on CPS is the cash-secured put strategy applied to CPS (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 CPS stock trading near $27.13, the strikes shown on this page are snapped to the nearest listed CPS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CPS 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 CPS cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 64.40%), 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 CPS cash-secured put?
- The breakeven for the CPS 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 CPS market-implied 1-standard-deviation expected move is approximately 18.46%; 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 CPS?
- Cash-secured puts on CPS earn premium while a trader waits to acquire CPS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CPS.
- How does current CPS implied volatility affect this cash-secured put?
- CPS ATM IV is at 64.40% with IV rank near 5.92%, 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.