FELE Cash-Secured Put Strategy
FELE (Franklin Electric Co., Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.
Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems worldwide. It operates through three segments: Water Systems, Fueling Systems, and Distribution. The Water Systems segment offers submersible motors, pumps, drives, electronic controls, water treatment systems, monitoring devices, and related parts and equipment. Its motors and pumps are used principally for pumping clean water and wastewater in various residential, agricultural, municipal, and industrial applications; and manufactures electronic drives and controls that are used in motors for controlling functionality, as well as provides protection from various hazards, such as electrical surges, over-heating, and dry wells or tanks. The Fueling Systems segment provides pumps, pipes, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment primarily for use in fueling system applications. This segment serves other energy markets, such as power reliability systems, as well as includes electronic devices for online monitoring of the power utility, hydroelectric, and telecommunication and data center infrastructure.
FELE (Franklin Electric Co., Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $4.30B, a trailing P/E of 28.60, a beta of 1.07 versus the broader market, a 52-week range of 83.42-111.53, average daily share volume of 344K, a public-listing history dating back to 1980, approximately 6K full-time employees. These structural characteristics shape how FELE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.07 places FELE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FELE 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 FELE?
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 FELE snapshot
As of May 15, 2026, spot at $96.17, ATM IV 155.50%, IV rank 78.78%, expected move 44.58%. The cash-secured put on FELE 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 FELE specifically: FELE IV at 155.50% is rich versus its 1-year range, which favors premium-selling structures like a FELE cash-secured put, with a market-implied 1-standard-deviation move of approximately 44.58% (roughly $42.87 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 FELE expiries trade a higher absolute premium for lower per-day decay. Position sizing on FELE should anchor to the underlying notional of $96.17 per share and to the trader's directional view on FELE stock.
FELE cash-secured put setup
The FELE 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 FELE near $96.17, the first option leg uses a $91.36 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FELE 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 FELE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $91.36 | N/A |
FELE cash-secured put risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
FELE cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on FELE. 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.
When traders use cash-secured put on FELE
Cash-secured puts on FELE earn premium while a trader waits to acquire FELE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FELE.
FELE thesis for this cash-secured put
The market-implied 1-standard-deviation range for FELE extends from approximately $53.30 on the downside to $139.04 on the upside. A FELE cash-secured put lets a trader earn premium while waiting to acquire FELE 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 FELE IV rank near 78.78% 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 FELE at 155.50%. As a Industrials name, FELE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FELE-specific events.
FELE 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. FELE positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FELE alongside the broader basket even when FELE-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on FELE carry tail risk when realized volatility exceeds the implied move; review historical FELE earnings reactions and macro stress periods before sizing. Always rebuild the position from current FELE chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on FELE?
- A cash-secured put on FELE is the cash-secured put strategy applied to FELE (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 FELE stock trading near $96.17, the strikes shown on this page are snapped to the nearest listed FELE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FELE 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 FELE cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 155.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FELE cash-secured put?
- The breakeven for the FELE cash-secured put priced on this page is no defined breakeven on the modeled curve 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 FELE market-implied 1-standard-deviation expected move is approximately 44.58%; 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 FELE?
- Cash-secured puts on FELE earn premium while a trader waits to acquire FELE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FELE.
- How does current FELE implied volatility affect this cash-secured put?
- FELE ATM IV is at 155.50% with IV rank near 78.78%, 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.