How are DVN 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 DVN cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.35%), the computed maximum profit is $55.00 per contract and the computed maximum loss is -$4,244.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DVN cash-secured put?

The breakeven for the DVN cash-secured put priced on this page is roughly $42.45 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The DVN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DVN implied volatility affect this cash-secured put?

DVN ATM IV is at 32.35% with IV rank near 25.42%, 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.

DVN Cash-Secured Put Strategy

DVN (Devon Energy Corporation), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.

As an independent energy producer, Devon Energy Corporation primarily focuses on the exploration, development, and extraction of oil, natural gas, and natural gas liquids within the United States. The company manages roughly 5,134 gross wells. Established in 1971, its corporate headquarters are located in Oklahoma City, Oklahoma.

DVN (Devon Energy Corporation) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $31.41B, a trailing P/E of 12.82, a beta of 0.42 versus the broader market, a 52-week range of 31.47-52.71, average daily share volume of 13.6M, a public-listing history dating back to 1985, approximately 2K full-time employees. These structural characteristics shape how DVN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.42 indicates DVN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. DVN 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 DVN?

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.

DVN snapshot

As of August 14, 2026, spot at $45.75, ATM IV 32.35%, IV rank 25.42%, expected move 9.27%. The cash-secured put on DVN below is built from the August 14, 2026 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 DVN specifically: DVN IV at 32.35% is on the cheap side of its 1-year range, which means a premium-selling DVN cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.27% (roughly $4.24 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 DVN expiries trade a higher absolute premium for lower per-day decay. Position sizing on DVN should anchor to the underlying notional of $45.75 per share and to the trader's directional view on DVN stock.

DVN cash-secured put setup

The DVN cash-secured put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With DVN at $45.75 on that close, the first option leg uses a $43.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DVN 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 DVN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$43.00	$0.55

DVN cash-secured put risk and reward

Net Premium / Debit: +$55.00
Max Profit (per contract): $55.00
Max Loss (per contract): -$4,244.00
Breakeven(s): $42.45
Risk / Reward Ratio: 0.013

Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.

DVN cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on DVN. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$4,244.00
$10.12	-77.9%	-$3,232.55
$20.24	-55.8%	-$2,221.11
$30.35	-33.7%	-$1,209.66
$40.47	-11.5%	-$198.21
$50.58	+10.6%	+$55.00
$60.70	+32.7%	+$55.00
$70.81	+54.8%	+$55.00
$80.93	+76.9%	+$55.00
$91.04	+99.0%	+$55.00

When traders use cash-secured put on DVN

Cash-secured puts on DVN earn premium while a trader waits to acquire DVN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning DVN.

DVN thesis for this cash-secured put

The market-implied 1-standard-deviation range for DVN extends from approximately $41.51 on the downside to $49.99 on the upside. A DVN cash-secured put lets a trader earn premium while waiting to acquire DVN 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 DVN IV rank near 25.42% 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 DVN at 32.35%. As a Energy name, DVN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DVN-specific events.

DVN 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. DVN positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DVN alongside the broader basket even when DVN-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on DVN carry tail risk when realized volatility exceeds the implied move; review historical DVN earnings reactions and macro stress periods before sizing. Always rebuild the position from current DVN chain quotes before placing a trade.

Frequently asked questions

What is a cash-secured put on DVN?: A cash-secured put on DVN is the cash-secured put strategy applied to DVN (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 DVN stock at $45.75 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed DVN chain strike and the premiums come straight from that session's bid/ask midpoint.
How are DVN 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 DVN cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.35%), the computed maximum profit is $55.00 per contract and the computed maximum loss is -$4,244.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DVN cash-secured put?: The breakeven for the DVN cash-secured put priced on this page is roughly $42.45 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The DVN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.27%; 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 DVN?: Cash-secured puts on DVN earn premium while a trader waits to acquire DVN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning DVN.
How does current DVN implied volatility affect this cash-secured put?: DVN ATM IV is at 32.35% with IV rank near 25.42%, 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.