CRI Cash-Secured Put Strategy

CRI (Carter's, Inc.), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NYSE.

Carter's, Inc., together with its subsidiaries, designs, sources, and markets branded childrenswear under the Carter's, OshKosh, Skip Hop, Child of Mine, Just One You, Simple Joys, Carter's My First Love, little planet, and other brands in the United States and internationally. The company operates through three segments: U.S. Retail, U.S. Wholesale, and International. Its Carter's products include babies and young children products, such as bodysuits, pants, dresses, knit sets, blankets, layette essentials, bibs, booties, sleep and play products, rompers, and jumpers; and OshKosh brand products comprise playclothes, such as denim apparel products with multiple wash treatments and coordinating garments, overalls, woven bottoms, knit tops, and bodysuits. The company also provides products for playtime, travel, mealtime, bathtime, and homegear, as well as kid's bags and diaper bags under the Skip Hop brand.

CRI (Carter's, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $1.23B, a trailing P/E of 13.07, a beta of 0.85 versus the broader market, a 52-week range of 23.38-44.44, average daily share volume of 1.3M, a public-listing history dating back to 2003, approximately 15K full-time employees. These structural characteristics shape how CRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.85 places CRI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CRI 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 CRI?

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 CRI snapshot

As of May 15, 2026, spot at $33.58, ATM IV 47.60%, IV rank 11.30%, expected move 13.65%. The cash-secured put on CRI 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 CRI specifically: CRI IV at 47.60% is on the cheap side of its 1-year range, which means a premium-selling CRI cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 13.65% (roughly $4.58 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 CRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRI should anchor to the underlying notional of $33.58 per share and to the trader's directional view on CRI stock.

CRI cash-secured put setup

The CRI 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 CRI near $33.58, the first option leg uses a $31.90 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRI 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 CRI shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$31.90N/A

CRI 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.

CRI cash-secured put payoff curve

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

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

CRI thesis for this cash-secured put

The market-implied 1-standard-deviation range for CRI extends from approximately $29.00 on the downside to $38.16 on the upside. A CRI cash-secured put lets a trader earn premium while waiting to acquire CRI 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 CRI IV rank near 11.30% 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 CRI at 47.60%. As a Consumer Cyclical name, CRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRI-specific events.

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

Frequently asked questions

What is a cash-secured put on CRI?
A cash-secured put on CRI is the cash-secured put strategy applied to CRI (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 CRI stock trading near $33.58, the strikes shown on this page are snapped to the nearest listed CRI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CRI 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 CRI cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 47.60%), 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 CRI cash-secured put?
The breakeven for the CRI 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 CRI market-implied 1-standard-deviation expected move is approximately 13.65%; 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 CRI?
Cash-secured puts on CRI earn premium while a trader waits to acquire CRI stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CRI.
How does current CRI implied volatility affect this cash-secured put?
CRI ATM IV is at 47.60% with IV rank near 11.30%, 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.

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