DSGR Cash-Secured Put Strategy
DSGR (Distribution Solutions Group, Inc.), in the Industrials sector, (Industrial - Distribution industry), listed on NASDAQ.
Lawson Products, Inc. sells and distributes specialty products to the industrial, commercial, institutional, and government maintenance, repair, and operations market. It sells its products to customers in the United States, Puerto Rico, Canada, Mexico, and the Caribbean. The company was founded in 1952 and is headquartered in Chicago, Illinois.
DSGR (Distribution Solutions Group, Inc.) trades in the Industrials sector, specifically Industrial - Distribution, with a market capitalization of approximately $1.26B, a trailing P/E of 229.60, a beta of 0.56 versus the broader market, a 52-week range of 19.02-33.8, average daily share volume of 146K, a public-listing history dating back to 1980, approximately 4K full-time employees. These structural characteristics shape how DSGR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.56 indicates DSGR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 229.60 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a cash-secured put on DSGR?
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 DSGR snapshot
As of May 15, 2026, spot at $26.89, ATM IV 104.10%, IV rank 32.05%, expected move 29.84%. The cash-secured put on DSGR 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 DSGR specifically: DSGR IV at 104.10% is mid-range versus its 1-year history, so the credit collected on a DSGR cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 29.84% (roughly $8.03 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 DSGR expiries trade a higher absolute premium for lower per-day decay. Position sizing on DSGR should anchor to the underlying notional of $26.89 per share and to the trader's directional view on DSGR stock.
DSGR cash-secured put setup
The DSGR 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 DSGR near $26.89, the first option leg uses a $25.55 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DSGR 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 DSGR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $25.55 | N/A |
DSGR 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.
DSGR cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on DSGR. 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 DSGR
Cash-secured puts on DSGR earn premium while a trader waits to acquire DSGR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning DSGR.
DSGR thesis for this cash-secured put
The market-implied 1-standard-deviation range for DSGR extends from approximately $18.86 on the downside to $34.92 on the upside. A DSGR cash-secured put lets a trader earn premium while waiting to acquire DSGR 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 DSGR IV rank near 32.05% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on DSGR should anchor more to the directional view and the expected-move geometry. As a Industrials name, DSGR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DSGR-specific events.
DSGR 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. DSGR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DSGR alongside the broader basket even when DSGR-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on DSGR carry tail risk when realized volatility exceeds the implied move; review historical DSGR earnings reactions and macro stress periods before sizing. Always rebuild the position from current DSGR chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on DSGR?
- A cash-secured put on DSGR is the cash-secured put strategy applied to DSGR (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 DSGR stock trading near $26.89, the strikes shown on this page are snapped to the nearest listed DSGR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DSGR 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 DSGR cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 104.10%), 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 DSGR cash-secured put?
- The breakeven for the DSGR 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 DSGR market-implied 1-standard-deviation expected move is approximately 29.84%; 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 DSGR?
- Cash-secured puts on DSGR earn premium while a trader waits to acquire DSGR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning DSGR.
- How does current DSGR implied volatility affect this cash-secured put?
- DSGR ATM IV is at 104.10% with IV rank near 32.05%, 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.