EOG Cash-Secured Put Strategy
EOG (EOG Resources, Inc.), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.
EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, and natural gas and natural gas liquids. Its principal producing areas are in New Mexico and Texas in the United States; and the Republic of Trinidad and Tobago. As of December 31, 2021, it had total estimated net proved reserves of 3,747 million barrels of oil equivalent, including 1,548 million barrels (MMBbl) of crude oil and condensate reserves; 829 MMBbl of natural gas liquid reserves; and 8,222 billion cubic feet of natural gas reserves. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.
EOG (EOG Resources, Inc.) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $71.87B, a trailing P/E of 13.06, a beta of 0.28 versus the broader market, a 52-week range of 101.59-151.87, average daily share volume of 5.0M, a public-listing history dating back to 1989, approximately 3K full-time employees. These structural characteristics shape how EOG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.28 indicates EOG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. EOG 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 EOG?
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 EOG snapshot
As of May 15, 2026, spot at $140.15, ATM IV 30.99%, IV rank 52.83%, expected move 8.88%. The cash-secured put on EOG 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 28-day expiry.
Why this cash-secured put structure on EOG specifically: EOG IV at 30.99% is mid-range versus its 1-year history, so the credit collected on a EOG cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 8.88% (roughly $12.45 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 EOG expiries trade a higher absolute premium for lower per-day decay. Position sizing on EOG should anchor to the underlying notional of $140.15 per share and to the trader's directional view on EOG stock.
EOG cash-secured put setup
The EOG 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 EOG near $140.15, the first option leg uses a $133.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EOG 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 EOG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $133.00 | $1.98 |
EOG cash-secured put risk and reward
- Net Premium / Debit
- +$197.50
- Max Profit (per contract)
- $197.50
- Max Loss (per contract)
- -$13,101.50
- Breakeven(s)
- $131.03
- Risk / Reward Ratio
- 0.015
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
EOG cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on EOG. 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% | -$13,101.50 |
| $31.00 | -77.9% | -$10,002.82 |
| $61.98 | -55.8% | -$6,904.13 |
| $92.97 | -33.7% | -$3,805.45 |
| $123.96 | -11.6% | -$706.77 |
| $154.94 | +10.6% | +$197.50 |
| $185.93 | +32.7% | +$197.50 |
| $216.92 | +54.8% | +$197.50 |
| $247.90 | +76.9% | +$197.50 |
| $278.89 | +99.0% | +$197.50 |
When traders use cash-secured put on EOG
Cash-secured puts on EOG earn premium while a trader waits to acquire EOG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning EOG.
EOG thesis for this cash-secured put
The market-implied 1-standard-deviation range for EOG extends from approximately $127.70 on the downside to $152.60 on the upside. A EOG cash-secured put lets a trader earn premium while waiting to acquire EOG 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 EOG IV rank near 52.83% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on EOG should anchor more to the directional view and the expected-move geometry. As a Energy name, EOG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EOG-specific events.
EOG 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. EOG positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EOG alongside the broader basket even when EOG-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on EOG carry tail risk when realized volatility exceeds the implied move; review historical EOG earnings reactions and macro stress periods before sizing. Always rebuild the position from current EOG chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on EOG?
- A cash-secured put on EOG is the cash-secured put strategy applied to EOG (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 EOG stock trading near $140.15, the strikes shown on this page are snapped to the nearest listed EOG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EOG 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 EOG cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 30.99%), the computed maximum profit is $197.50 per contract and the computed maximum loss is -$13,101.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EOG cash-secured put?
- The breakeven for the EOG cash-secured put priced on this page is roughly $131.03 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 EOG market-implied 1-standard-deviation expected move is approximately 8.88%; 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 EOG?
- Cash-secured puts on EOG earn premium while a trader waits to acquire EOG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning EOG.
- How does current EOG implied volatility affect this cash-secured put?
- EOG ATM IV is at 30.99% with IV rank near 52.83%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.