DTM Cash-Secured Put Strategy
DTM (DT Midstream, Inc.), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.
DT Midstream, Inc. provides integrated natural gas services in the United States. The company operates through two segments, Pipeline and Gathering. It develops, owns, and operates an integrated portfolio of interstate pipelines, intrastate pipelines, storage systems, lateral pipelines, gathering systems, related treatment plants, and compression and surface facilities. The company engages in the transportation and storage of natural gas for intermediate and end user customers; and collecting natural gas from points at or near customers' wells for delivery to plants for processing, to gathering pipelines for gathering, or to pipelines for transportation, as well as offers compression, dehydration, gas treatment, water impoundment, water storage, water transportation, and sand mining services. It serves natural gas producers, local distribution companies, electric power generators, industrials, and national marketers. The company was incorporated in 2021 and is headquartered in Detroit, Michigan.
DTM (DT Midstream, Inc.) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $14.89B, a trailing P/E of 32.10, a beta of 0.78 versus the broader market, a 52-week range of 98.06-150.45, average daily share volume of 965K, a public-listing history dating back to 2021, approximately 556 full-time employees. These structural characteristics shape how DTM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.78 places DTM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DTM 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 DTM?
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 DTM snapshot
As of May 15, 2026, spot at $147.28, ATM IV 19.00%, IV rank 1.32%, expected move 5.45%. The cash-secured put on DTM 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 DTM specifically: DTM IV at 19.00% is on the cheap side of its 1-year range, which means a premium-selling DTM cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.45% (roughly $8.02 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 DTM expiries trade a higher absolute premium for lower per-day decay. Position sizing on DTM should anchor to the underlying notional of $147.28 per share and to the trader's directional view on DTM stock.
DTM cash-secured put setup
The DTM 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 DTM near $147.28, the first option leg uses a $140.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DTM 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 DTM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $140.00 | $0.80 |
DTM cash-secured put risk and reward
- Net Premium / Debit
- +$80.00
- Max Profit (per contract)
- $80.00
- Max Loss (per contract)
- -$13,919.00
- Breakeven(s)
- $139.24
- Risk / Reward Ratio
- 0.006
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
DTM cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on DTM. 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% | -$13,919.00 |
| $32.57 | -77.9% | -$10,662.67 |
| $65.14 | -55.8% | -$7,406.34 |
| $97.70 | -33.7% | -$4,150.01 |
| $130.26 | -11.6% | -$893.67 |
| $162.83 | +10.6% | +$80.00 |
| $195.39 | +32.7% | +$80.00 |
| $227.95 | +54.8% | +$80.00 |
| $260.52 | +76.9% | +$80.00 |
| $293.08 | +99.0% | +$80.00 |
When traders use cash-secured put on DTM
Cash-secured puts on DTM earn premium while a trader waits to acquire DTM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning DTM.
DTM thesis for this cash-secured put
The market-implied 1-standard-deviation range for DTM extends from approximately $139.26 on the downside to $155.30 on the upside. A DTM cash-secured put lets a trader earn premium while waiting to acquire DTM 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 DTM IV rank near 1.32% 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 DTM at 19.00%. As a Energy name, DTM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DTM-specific events.
DTM 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. DTM positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DTM alongside the broader basket even when DTM-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on DTM carry tail risk when realized volatility exceeds the implied move; review historical DTM earnings reactions and macro stress periods before sizing. Always rebuild the position from current DTM chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on DTM?
- A cash-secured put on DTM is the cash-secured put strategy applied to DTM (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 DTM stock trading near $147.28, the strikes shown on this page are snapped to the nearest listed DTM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DTM 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 DTM cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 19.00%), the computed maximum profit is $80.00 per contract and the computed maximum loss is -$13,919.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DTM cash-secured put?
- The breakeven for the DTM cash-secured put priced on this page is roughly $139.24 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 DTM market-implied 1-standard-deviation expected move is approximately 5.45%; 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 DTM?
- Cash-secured puts on DTM earn premium while a trader waits to acquire DTM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning DTM.
- How does current DTM implied volatility affect this cash-secured put?
- DTM ATM IV is at 19.00% with IV rank near 1.32%, 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.