DY Cash-Secured Put Strategy
DY (Dycom Industries, Inc.), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.
Dycom Industries, Inc. provides specialty contracting services in the United States. The company offers program management and engineering services; plans and designs aerial, underground, and buried fiber optic, copper, and coaxial cable systems; and construction, maintenance, and installation services, such as placement and splicing of fiber, copper, and coaxial cables to telecommunications providers. It also provides tower construction, lines and antenna installation, foundation and equipment pad construction, and small cell site placement for wireless carriers, as well as equipment installation and material fabrication, and site testing services; and installs and maintains customer premise equipment, such as digital video recorders, set top boxes, and modems for cable system operators. In addition, the company offers construction and maintenance services for electric and gas utilities, and other customers; and underground facility locating services, such as locating telephone, cable television, power, water, sewer, and gas lines for various utility companies, including telecommunication providers. Dycom Industries, Inc. was incorporated in 1969 and is headquartered in Palm Beach Gardens, Florida.
DY (Dycom Industries, Inc.) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $13.35B, a trailing P/E of 45.96, a beta of 1.46 versus the broader market, a 52-week range of 186.42-464.82, average daily share volume of 423K, a public-listing history dating back to 1984, approximately 16K full-time employees. These structural characteristics shape how DY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.46 indicates DY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 45.96 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 DY?
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 DY snapshot
As of May 15, 2026, spot at $437.68, ATM IV 66.80%, IV rank 77.10%, expected move 19.15%. The cash-secured put on DY 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 DY specifically: DY IV at 66.80% is rich versus its 1-year range, which favors premium-selling structures like a DY cash-secured put, with a market-implied 1-standard-deviation move of approximately 19.15% (roughly $83.82 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 DY expiries trade a higher absolute premium for lower per-day decay. Position sizing on DY should anchor to the underlying notional of $437.68 per share and to the trader's directional view on DY stock.
DY cash-secured put setup
The DY 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 DY near $437.68, the first option leg uses a $420.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DY 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 DY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $420.00 | $26.05 |
DY cash-secured put risk and reward
- Net Premium / Debit
- +$2,605.00
- Max Profit (per contract)
- $2,605.00
- Max Loss (per contract)
- -$39,394.00
- Breakeven(s)
- $393.95
- 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.
DY cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on DY. 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% | -$39,394.00 |
| $96.78 | -77.9% | -$29,716.76 |
| $193.55 | -55.8% | -$20,039.53 |
| $290.33 | -33.7% | -$10,362.29 |
| $387.10 | -11.6% | -$685.06 |
| $483.87 | +10.6% | +$2,605.00 |
| $580.64 | +32.7% | +$2,605.00 |
| $677.42 | +54.8% | +$2,605.00 |
| $774.19 | +76.9% | +$2,605.00 |
| $870.96 | +99.0% | +$2,605.00 |
When traders use cash-secured put on DY
Cash-secured puts on DY earn premium while a trader waits to acquire DY stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning DY.
DY thesis for this cash-secured put
The market-implied 1-standard-deviation range for DY extends from approximately $353.86 on the downside to $521.50 on the upside. A DY cash-secured put lets a trader earn premium while waiting to acquire DY 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 DY IV rank near 77.10% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on DY at 66.80%. As a Industrials name, DY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DY-specific events.
DY 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. DY positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DY alongside the broader basket even when DY-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on DY carry tail risk when realized volatility exceeds the implied move; review historical DY earnings reactions and macro stress periods before sizing. Always rebuild the position from current DY chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on DY?
- A cash-secured put on DY is the cash-secured put strategy applied to DY (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 DY stock trading near $437.68, the strikes shown on this page are snapped to the nearest listed DY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DY 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 DY cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 66.80%), the computed maximum profit is $2,605.00 per contract and the computed maximum loss is -$39,394.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DY cash-secured put?
- The breakeven for the DY cash-secured put priced on this page is roughly $393.95 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 DY market-implied 1-standard-deviation expected move is approximately 19.15%; 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 DY?
- Cash-secured puts on DY earn premium while a trader waits to acquire DY stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning DY.
- How does current DY implied volatility affect this cash-secured put?
- DY ATM IV is at 66.80% with IV rank near 77.10%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.