FMNB Cash-Secured Put Strategy
FMNB (Farmers National Banc Corp.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Farmers National Banc Corp., a financial holding company, operates in the banking, trust, retirement consulting, insurance, and financial management industries. It offers commercial and retail banking services, including checking, savings, and time deposit accounts; commercial, mortgage and installment, and home equity loans; home equity lines of credit, night depository, safe deposit box, money order, bank check, automated teller machine, Internet banking, travel card, E bond transaction, MasterCard and Visa credit cards, brokerage, and other services. The company also provides personal and corporate trust services in the areas of estate settlement, trust administration, and employee benefit plans; retirement services; property and casualty insurance products and services; and various insurance products through licensed representatives, as well as invests in municipal securities. It operates through 47 locations in northeastern region of Ohio and one location in southwestern Pennsylvania. The company was founded in 1887 and is based in Canfield, Ohio.
FMNB (Farmers National Banc Corp.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $540.2M, a trailing P/E of 10.78, a beta of 0.79 versus the broader market, a 52-week range of 12.12-15.5, average daily share volume of 423K, a public-listing history dating back to 1999, approximately 682 full-time employees. These structural characteristics shape how FMNB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.79 places FMNB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 10.78 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. FMNB 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 FMNB?
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 FMNB snapshot
As of May 15, 2026, spot at $13.68, ATM IV 283.40%, IV rank 77.71%, expected move 81.25%. The cash-secured put on FMNB 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 FMNB specifically: FMNB IV at 283.40% is rich versus its 1-year range, which favors premium-selling structures like a FMNB cash-secured put, with a market-implied 1-standard-deviation move of approximately 81.25% (roughly $11.11 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 FMNB expiries trade a higher absolute premium for lower per-day decay. Position sizing on FMNB should anchor to the underlying notional of $13.68 per share and to the trader's directional view on FMNB stock.
FMNB cash-secured put setup
The FMNB 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 FMNB near $13.68, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FMNB 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 FMNB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $13.00 | N/A |
FMNB 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.
FMNB cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on FMNB. 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 FMNB
Cash-secured puts on FMNB earn premium while a trader waits to acquire FMNB stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FMNB.
FMNB thesis for this cash-secured put
The market-implied 1-standard-deviation range for FMNB extends from approximately $2.57 on the downside to $24.79 on the upside. A FMNB cash-secured put lets a trader earn premium while waiting to acquire FMNB 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 FMNB IV rank near 77.71% 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 FMNB at 283.40%. As a Financial Services name, FMNB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FMNB-specific events.
FMNB 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. FMNB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FMNB alongside the broader basket even when FMNB-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on FMNB carry tail risk when realized volatility exceeds the implied move; review historical FMNB earnings reactions and macro stress periods before sizing. Always rebuild the position from current FMNB chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on FMNB?
- A cash-secured put on FMNB is the cash-secured put strategy applied to FMNB (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 FMNB stock trading near $13.68, the strikes shown on this page are snapped to the nearest listed FMNB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FMNB 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 FMNB cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 283.40%), 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 FMNB cash-secured put?
- The breakeven for the FMNB 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 FMNB market-implied 1-standard-deviation expected move is approximately 81.25%; 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 FMNB?
- Cash-secured puts on FMNB earn premium while a trader waits to acquire FMNB stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FMNB.
- How does current FMNB implied volatility affect this cash-secured put?
- FMNB ATM IV is at 283.40% with IV rank near 77.71%, 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.