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., operating primarily through its subsidiary Cooper-Standard Automotive Inc., is an enterprise dedicated to the engineering, production, and sale of vital automotive components, specifically sealing, fuel and braking, and fluid conveyance systems. Its comprehensive portfolio of sealing solutions encompasses obstacle detection sensor setups, adaptable dynamic and static seals, innovative variable extrusion systems, specialized sealing items, encapsulated glass components, stainless steel trim elements, FlushSeal technologies, and aesthetically textured surfaces mimicking fabric. For fuel and braking distribution, the company offers chassis and tank fuel lines (including bundled options), direct injection and port fuel rails, metallic brake lines (also offered in bundles), protective tube coatings, convenient quick connection mechanisms, advanced low oligomer multi-layer convoluted tubes, and brake jounce lines. Furthermore, its fluid transfer systems include heater and coolant hoses, turbocharger hoses, quick connect fittings, charged air cooler ducts and assemblies, DPF and SCR emission lines, secondary air hoses, degas tanks, hoses for brakes and clutches, air intake and charge systems, transmission oil cooling hoses, and specialized multilayer tubing for glycol-based thermal regulation. These components are predominantly integrated into passenger vehicles and light trucks, serving both original equipment manufacturers (OEMs) and the aftermarket for replacement parts. Cooper-Standard maintains a broad international footprint, with operations in countries such as the United States, Mexico, China, Poland, Canada, Germany, and France, among other global locations.
CPS (Cooper-Standard Holdings Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $505.1M, a beta of 2.03 versus the broader market, a 52-week range of 25.27-47.98, average daily share volume of 176K, 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 2.03 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.
CPS snapshot
As of August 14, 2026, spot at $28.32, ATM IV 57.60%, IV rank 4.04%, expected move 16.51%. The cash-secured put on CPS 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 CPS specifically: CPS IV at 57.60% 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 16.51% (roughly $4.68 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 CPS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPS should anchor to the underlying notional of $28.32 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 at $28.32 on that close, the first option leg uses a $26.90 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 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 CPS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $26.90 | 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 $23.64 on the downside to $33.00 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 4.04% 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 57.60%. 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 at $28.32 on the most recent close, the strikes shown on this page are snapped to the nearest listed CPS chain strike and the premiums come straight from that session's 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 57.60%), 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 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 CPS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.51%; 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 57.60% with IV rank near 4.04%, 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.