DORM Cash-Secured Put Strategy
DORM (Dorman Products, Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.
Dorman Products, Inc. (DORM) is a global supplier within the automotive aftermarket, providing an extensive range of replacement parts and fasteners for passenger vehicles, light trucks, and heavy-duty commercial trucks. Their comprehensive product catalog features components engineered to meet or surpass original equipment (OE) specifications. This includes critical engine parts like intake and exhaust manifolds, EGR coolers, and variable valve timing (VVT) components; sophisticated electronics such as complex modules, tire pressure monitor sensors, and integrated door lock actuators; as well as essential hardware like oil drain plugs and wheel fasteners. They also supply window regulators and radiator fan assemblies. Beyond OE-style parts, Dorman offers a broad array of general automotive replacement items, from door handles and keyless remote systems to hinge repair kits. For heavy-duty vehicles (Class 4-8), their specialized aftermarket components cover lighting, cooling systems, engine management solutions, wheel hardware, air tanks, and cab accessories.
DORM (Dorman Products, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $4.02B, a trailing P/E of 21.40, a beta of 0.99 versus the broader market, a 52-week range of 98.45-166.89, average daily share volume of 270K, a public-listing history dating back to 1991, approximately 4K full-time employees. These structural characteristics shape how DORM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.99 places DORM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a cash-secured put on DORM?
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 DORM snapshot
As of June 30, 2026, spot at $136.78, ATM IV 36.60%, IV rank 40.89%, expected move 10.49%. The cash-secured put on DORM 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 17-day expiry.
Why this cash-secured put structure on DORM specifically: DORM IV at 36.60% is mid-range versus its 1-year history, so the credit collected on a DORM cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.49% (roughly $14.35 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DORM expiries trade a higher absolute premium for lower per-day decay. Position sizing on DORM should anchor to the underlying notional of $136.78 per share and to the trader's directional view on DORM stock.
DORM cash-secured put setup
The DORM 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 DORM near $136.78, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DORM chain at a 17-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 DORM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $130.00 | $2.30 |
DORM cash-secured put risk and reward
- Net Premium / Debit
- +$230.00
- Max Profit (per contract)
- $230.00
- Max Loss (per contract)
- -$12,769.00
- Breakeven(s)
- $127.70
- Risk / Reward Ratio
- 0.018
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
DORM cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on DORM. 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% | -$12,769.00 |
| $30.25 | -77.9% | -$9,744.83 |
| $60.49 | -55.8% | -$6,720.66 |
| $90.74 | -33.7% | -$3,696.49 |
| $120.98 | -11.6% | -$672.32 |
| $151.22 | +10.6% | +$230.00 |
| $181.46 | +32.7% | +$230.00 |
| $211.70 | +54.8% | +$230.00 |
| $241.94 | +76.9% | +$230.00 |
| $272.19 | +99.0% | +$230.00 |
When traders use cash-secured put on DORM
Cash-secured puts on DORM earn premium while a trader waits to acquire DORM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning DORM.
DORM thesis for this cash-secured put
The market-implied 1-standard-deviation range for DORM extends from approximately $122.43 on the downside to $151.13 on the upside. A DORM cash-secured put lets a trader earn premium while waiting to acquire DORM 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 DORM IV rank near 40.89% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on DORM should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, DORM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DORM-specific events.
DORM 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. DORM positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DORM alongside the broader basket even when DORM-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on DORM carry tail risk when realized volatility exceeds the implied move; review historical DORM earnings reactions and macro stress periods before sizing. Always rebuild the position from current DORM chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on DORM?
- A cash-secured put on DORM is the cash-secured put strategy applied to DORM (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 DORM stock trading near $136.78, the strikes shown on this page are snapped to the nearest listed DORM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DORM 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 DORM cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 36.60%), the computed maximum profit is $230.00 per contract and the computed maximum loss is -$12,769.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DORM cash-secured put?
- The breakeven for the DORM cash-secured put priced on this page is roughly $127.70 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 DORM market-implied 1-standard-deviation expected move is approximately 10.49%; 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 DORM?
- Cash-secured puts on DORM earn premium while a trader waits to acquire DORM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning DORM.
- How does current DORM implied volatility affect this cash-secured put?
- DORM ATM IV is at 36.60% with IV rank near 40.89%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.