CWAN Cash-Secured Put Strategy
CWAN (Clearwater Analytics Holdings, Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.
Clearwater Analytics Holdings, Inc. develops and provides a Software-as-a-Service solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities. The company offers investment accounting and reporting, performance measurement, compliance monitoring, and risk analytics solutions. Its Clearwater Prism solution enables self-service access to data feeds from accounting, compliance, performance, and risk systems, including those offered by the company and other third-party software vendors, as well as provides flexible reporting to various users. The company was incorporated in 2021 and is headquartered in Boise, Idaho.
CWAN (Clearwater Analytics Holdings, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $7.24B, a beta of 0.60 versus the broader market, a 52-week range of 15.735-25.069, average daily share volume of 5.1M, a public-listing history dating back to 2021, approximately 2K full-time employees. These structural characteristics shape how CWAN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.60 indicates CWAN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a cash-secured put on CWAN?
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 CWAN snapshot
As of May 15, 2026, spot at $24.34, ATM IV 15.29%, IV rank 11.63%, expected move 4.38%. The cash-secured put on CWAN 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 CWAN specifically: CWAN IV at 15.29% is on the cheap side of its 1-year range, which means a premium-selling CWAN cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 4.38% (roughly $1.07 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 CWAN expiries trade a higher absolute premium for lower per-day decay. Position sizing on CWAN should anchor to the underlying notional of $24.34 per share and to the trader's directional view on CWAN stock.
CWAN cash-secured put setup
The CWAN 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 CWAN near $24.34, the first option leg uses a $23.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CWAN 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 CWAN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $23.00 | $0.23 |
CWAN cash-secured put risk and reward
- Net Premium / Debit
- +$23.00
- Max Profit (per contract)
- $23.00
- Max Loss (per contract)
- -$2,276.00
- Breakeven(s)
- $22.77
- Risk / Reward Ratio
- 0.010
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
CWAN cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on CWAN. 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% | -$2,276.00 |
| $5.39 | -77.9% | -$1,737.94 |
| $10.77 | -55.7% | -$1,199.88 |
| $16.15 | -33.6% | -$661.82 |
| $21.53 | -11.5% | -$123.76 |
| $26.91 | +10.6% | +$23.00 |
| $32.29 | +32.7% | +$23.00 |
| $37.67 | +54.8% | +$23.00 |
| $43.05 | +76.9% | +$23.00 |
| $48.44 | +99.0% | +$23.00 |
When traders use cash-secured put on CWAN
Cash-secured puts on CWAN earn premium while a trader waits to acquire CWAN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CWAN.
CWAN thesis for this cash-secured put
The market-implied 1-standard-deviation range for CWAN extends from approximately $23.27 on the downside to $25.41 on the upside. A CWAN cash-secured put lets a trader earn premium while waiting to acquire CWAN 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 CWAN IV rank near 11.63% 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 CWAN at 15.29%. As a Technology name, CWAN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CWAN-specific events.
CWAN 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. CWAN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CWAN alongside the broader basket even when CWAN-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on CWAN carry tail risk when realized volatility exceeds the implied move; review historical CWAN earnings reactions and macro stress periods before sizing. Always rebuild the position from current CWAN chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on CWAN?
- A cash-secured put on CWAN is the cash-secured put strategy applied to CWAN (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 CWAN stock trading near $24.34, the strikes shown on this page are snapped to the nearest listed CWAN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CWAN 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 CWAN cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 15.29%), the computed maximum profit is $23.00 per contract and the computed maximum loss is -$2,276.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CWAN cash-secured put?
- The breakeven for the CWAN cash-secured put priced on this page is roughly $22.77 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 CWAN market-implied 1-standard-deviation expected move is approximately 4.38%; 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 CWAN?
- Cash-secured puts on CWAN earn premium while a trader waits to acquire CWAN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CWAN.
- How does current CWAN implied volatility affect this cash-secured put?
- CWAN ATM IV is at 15.29% with IV rank near 11.63%, 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.