FLR Cash-Secured Put Strategy
FLR (Fluor Corporation), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.
Fluor Corporation provides engineering, procurement, and construction (EPC); fabrication and modularization; operation and maintenance; asset integrity; and project management services worldwide. It operates through four segments: Energy Solutions, Urban Solutions, Mission Solutions, and Other. The Energy Solutions provides solutions to the energy transition markets, including asset decarbonization, carbon capture, renewable fuels, waste-to-energy, green chemicals, hydrogen, nuclear power, and other low-carbon energy sources. It also provides consulting services, including feasibility studies, process assessments, and project finance structuring; and a range of services for small modular reactor technologies, as well as operation support services for nuclear power facilities and managing waste. This segment serves the oil, gas, and petrochemical industries. The Urban Solutions segment offers EPC and project management services to the infrastructure, advanced technologies, life sciences, and mining and metals industries.
FLR (Fluor Corporation) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $6.29B, a trailing P/E of 21.77, a beta of 1.33 versus the broader market, a 52-week range of 37.34-57.5, average daily share volume of 2.8M, a public-listing history dating back to 2000, approximately 27K full-time employees. These structural characteristics shape how FLR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.33 indicates FLR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a cash-secured put on FLR?
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 FLR snapshot
As of May 15, 2026, spot at $44.65, ATM IV 45.70%, IV rank 12.53%, expected move 13.10%. The cash-secured put on FLR 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 FLR specifically: FLR IV at 45.70% is on the cheap side of its 1-year range, which means a premium-selling FLR cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 13.10% (roughly $5.85 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 FLR expiries trade a higher absolute premium for lower per-day decay. Position sizing on FLR should anchor to the underlying notional of $44.65 per share and to the trader's directional view on FLR stock.
FLR cash-secured put setup
The FLR 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 FLR near $44.65, the first option leg uses a $42.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FLR 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 FLR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $42.50 | $1.55 |
FLR cash-secured put risk and reward
- Net Premium / Debit
- +$155.00
- Max Profit (per contract)
- $155.00
- Max Loss (per contract)
- -$4,094.00
- Breakeven(s)
- $40.95
- Risk / Reward Ratio
- 0.038
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
FLR cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on FLR. 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% | -$4,094.00 |
| $9.88 | -77.9% | -$3,106.87 |
| $19.75 | -55.8% | -$2,119.75 |
| $29.62 | -33.7% | -$1,132.62 |
| $39.50 | -11.5% | -$145.50 |
| $49.37 | +10.6% | +$155.00 |
| $59.24 | +32.7% | +$155.00 |
| $69.11 | +54.8% | +$155.00 |
| $78.98 | +76.9% | +$155.00 |
| $88.85 | +99.0% | +$155.00 |
When traders use cash-secured put on FLR
Cash-secured puts on FLR earn premium while a trader waits to acquire FLR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FLR.
FLR thesis for this cash-secured put
The market-implied 1-standard-deviation range for FLR extends from approximately $38.80 on the downside to $50.50 on the upside. A FLR cash-secured put lets a trader earn premium while waiting to acquire FLR 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 FLR IV rank near 12.53% 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 FLR at 45.70%. As a Industrials name, FLR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FLR-specific events.
FLR 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. FLR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FLR alongside the broader basket even when FLR-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on FLR carry tail risk when realized volatility exceeds the implied move; review historical FLR earnings reactions and macro stress periods before sizing. Always rebuild the position from current FLR chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on FLR?
- A cash-secured put on FLR is the cash-secured put strategy applied to FLR (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 FLR stock trading near $44.65, the strikes shown on this page are snapped to the nearest listed FLR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FLR 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 FLR cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 45.70%), the computed maximum profit is $155.00 per contract and the computed maximum loss is -$4,094.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FLR cash-secured put?
- The breakeven for the FLR cash-secured put priced on this page is roughly $40.95 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 FLR market-implied 1-standard-deviation expected move is approximately 13.10%; 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 FLR?
- Cash-secured puts on FLR earn premium while a trader waits to acquire FLR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FLR.
- How does current FLR implied volatility affect this cash-secured put?
- FLR ATM IV is at 45.70% with IV rank near 12.53%, 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.