EIX Cash-Secured Put Strategy
EIX (Edison International), in the Utilities sector, (Regulated Electric industry), listed on NYSE.
Edison International, through its subsidiaries, generates and distributes electric power. It delivers electricity to 15 million residential, commercial, industrial, public authorities, agricultural, and other customers across Southern, Central, and Coastal California. The company also provides energy solutions to commercial and industrial users. Its transmission facilities consist of lines ranging from 55 kV to 500 kV and substations; and distribution system consists of approximately 39,000 circuit-miles of overhead lines, approximately 31,000 circuit-miles of underground lines, and 800 substations. The company was founded in 1886 and is headquartered in Rosemead, California.
EIX (Edison International) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $27.17B, a trailing P/E of 7.35, a beta of 0.68 versus the broader market, a 52-week range of 47.73-76.22, average daily share volume of 3.2M, a public-listing history dating back to 1973, approximately 14K full-time employees. These structural characteristics shape how EIX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.68 indicates EIX 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 7.35 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. EIX 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 EIX?
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 EIX snapshot
As of May 15, 2026, spot at $69.22, ATM IV 27.70%, IV rank 14.38%, expected move 7.94%. The cash-secured put on EIX 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 63-day expiry.
Why this cash-secured put structure on EIX specifically: EIX IV at 27.70% is on the cheap side of its 1-year range, which means a premium-selling EIX cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.94% (roughly $5.50 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EIX expiries trade a higher absolute premium for lower per-day decay. Position sizing on EIX should anchor to the underlying notional of $69.22 per share and to the trader's directional view on EIX stock.
EIX cash-secured put setup
The EIX 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 EIX near $69.22, 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 EIX chain at a 63-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 EIX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $65.00 | $1.70 |
EIX cash-secured put risk and reward
- Net Premium / Debit
- +$170.00
- Max Profit (per contract)
- $170.00
- Max Loss (per contract)
- -$6,329.00
- Breakeven(s)
- $63.30
- Risk / Reward Ratio
- 0.027
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
EIX cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on EIX. 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% | -$6,329.00 |
| $15.31 | -77.9% | -$4,798.62 |
| $30.62 | -55.8% | -$3,268.24 |
| $45.92 | -33.7% | -$1,737.85 |
| $61.23 | -11.5% | -$207.47 |
| $76.53 | +10.6% | +$170.00 |
| $91.83 | +32.7% | +$170.00 |
| $107.14 | +54.8% | +$170.00 |
| $122.44 | +76.9% | +$170.00 |
| $137.74 | +99.0% | +$170.00 |
When traders use cash-secured put on EIX
Cash-secured puts on EIX earn premium while a trader waits to acquire EIX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning EIX.
EIX thesis for this cash-secured put
The market-implied 1-standard-deviation range for EIX extends from approximately $63.72 on the downside to $74.72 on the upside. A EIX cash-secured put lets a trader earn premium while waiting to acquire EIX 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 EIX IV rank near 14.38% 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 EIX at 27.70%. As a Utilities name, EIX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EIX-specific events.
EIX 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. EIX positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EIX alongside the broader basket even when EIX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on EIX carry tail risk when realized volatility exceeds the implied move; review historical EIX earnings reactions and macro stress periods before sizing. Always rebuild the position from current EIX chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on EIX?
- A cash-secured put on EIX is the cash-secured put strategy applied to EIX (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 EIX stock trading near $69.22, the strikes shown on this page are snapped to the nearest listed EIX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EIX 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 EIX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 27.70%), the computed maximum profit is $170.00 per contract and the computed maximum loss is -$6,329.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EIX cash-secured put?
- The breakeven for the EIX cash-secured put priced on this page is roughly $63.30 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 EIX market-implied 1-standard-deviation expected move is approximately 7.94%; 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 EIX?
- Cash-secured puts on EIX earn premium while a trader waits to acquire EIX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning EIX.
- How does current EIX implied volatility affect this cash-secured put?
- EIX ATM IV is at 27.70% with IV rank near 14.38%, 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.