DSGX Cash-Secured Put Strategy
DSGX (The Descartes Systems Group Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
The Descartes Systems Group Inc. (DSGX) offers comprehensive, cloud-native solutions designed to optimize business processes within the logistics and supply chain sectors. The primary objective is to significantly elevate the efficiency, operational excellence, and security posture for enterprises worldwide that heavily rely on robust logistics. At its core, the company offers a proprietary "Logistics Technology" platform. This platform provides a versatile array of modular, interconnected web and mobile applications, all accessible via the cloud, which collectively foster a collaborative ecosystem where various logistics stakeholders can seamlessly conduct transactions and manage operations. Descartes' extensive portfolio encompasses specialized solutions for route optimization, mobile workforce management, and telematics; comprehensive transportation management and e-commerce integration; customs and regulatory adherence; global trade data intelligence; logistics network facilitation; and specialized enterprise systems tailored for brokers and freight forwarders. Clients harness these adaptable Software-as-a-Service (SaaS) and data-driven offerings to meticulously plan and execute deliveries—including scheduling, tracking, and performance measurement.
DSGX (The Descartes Systems Group Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $6.04B, a trailing P/E of 34.17, a beta of 0.22 versus the broader market, a 52-week range of 62.56-109, average daily share volume of 558K, a public-listing history dating back to 1999, approximately 1K full-time employees. These structural characteristics shape how DSGX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.22 indicates DSGX 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 DSGX?
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 DSGX snapshot
As of June 30, 2026, spot at $69.31, ATM IV 41.30%, IV rank 5.40%, expected move 11.84%. The cash-secured put on DSGX 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 80-day expiry.
Why this cash-secured put structure on DSGX specifically: DSGX IV at 41.30% is on the cheap side of its 1-year range, which means a premium-selling DSGX cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 11.84% (roughly $8.21 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DSGX expiries trade a higher absolute premium for lower per-day decay. Position sizing on DSGX should anchor to the underlying notional of $69.31 per share and to the trader's directional view on DSGX stock.
DSGX cash-secured put setup
The DSGX 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 DSGX near $69.31, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DSGX chain at a 80-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 DSGX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $65.00 | $4.00 |
DSGX cash-secured put risk and reward
- Net Premium / Debit
- +$400.00
- Max Profit (per contract)
- $400.00
- Max Loss (per contract)
- -$6,099.00
- Breakeven(s)
- $61.00
- Risk / Reward Ratio
- 0.066
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
DSGX cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on DSGX. 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% | -$6,099.00 |
| $15.33 | -77.9% | -$4,566.63 |
| $30.66 | -55.8% | -$3,034.26 |
| $45.98 | -33.7% | -$1,501.88 |
| $61.30 | -11.5% | +$30.49 |
| $76.63 | +10.6% | +$400.00 |
| $91.95 | +32.7% | +$400.00 |
| $107.28 | +54.8% | +$400.00 |
| $122.60 | +76.9% | +$400.00 |
| $137.92 | +99.0% | +$400.00 |
When traders use cash-secured put on DSGX
Cash-secured puts on DSGX earn premium while a trader waits to acquire DSGX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning DSGX.
DSGX thesis for this cash-secured put
The market-implied 1-standard-deviation range for DSGX extends from approximately $61.10 on the downside to $77.52 on the upside. A DSGX cash-secured put lets a trader earn premium while waiting to acquire DSGX 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 DSGX IV rank near 5.40% 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 DSGX at 41.30%. As a Technology name, DSGX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DSGX-specific events.
DSGX 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. DSGX positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DSGX alongside the broader basket even when DSGX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on DSGX carry tail risk when realized volatility exceeds the implied move; review historical DSGX earnings reactions and macro stress periods before sizing. Always rebuild the position from current DSGX chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on DSGX?
- A cash-secured put on DSGX is the cash-secured put strategy applied to DSGX (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 DSGX stock trading near $69.31, the strikes shown on this page are snapped to the nearest listed DSGX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DSGX 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 DSGX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 41.30%), the computed maximum profit is $400.00 per contract and the computed maximum loss is -$6,099.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DSGX cash-secured put?
- The breakeven for the DSGX cash-secured put priced on this page is roughly $61.00 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 DSGX market-implied 1-standard-deviation expected move is approximately 11.84%; 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 DSGX?
- Cash-secured puts on DSGX earn premium while a trader waits to acquire DSGX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning DSGX.
- How does current DSGX implied volatility affect this cash-secured put?
- DSGX ATM IV is at 41.30% with IV rank near 5.40%, 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.