FN Cash-Secured Put Strategy
FN (Fabrinet), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NYSE.
Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services in North America, the Asia-Pacific, and Europe. The company offers a range of advanced optical and electro-mechanical capabilities in the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, advanced packaging, integration, final assembly, and testing. Its products include switching products, including reconfigurable optical add-drop multiplexers, optical amplifiers, modulators, and other optical components and modules that enable network managers to route voice, video, and data communications traffic through fiber optic cables at various wavelengths, speeds, and over various distances. The company's products also comprise tunable lasers, transceivers, and transponders; and active optical cables, which provide high-speed interconnect capabilities for data centers and computing clusters, as well as Infiniband, Ethernet, fiber channel, and optical backplane connectivity. In addition, it provides solid state, diode-pumped, gas, and fiber lasers used in semiconductor processing, biotechnology and medical device, metrology, and material processing industries; and differential pressure, micro-gyro, fuel, and other sensors used in automobiles, as well as non-contact temperature measurement sensors for the medical industry. Further, the company designs and fabricates application-specific crystals, lenses, prisms, mirrors, laser components, and substrates; and other custom and standard borosilicate, clear fused quartz, and synthetic fused silica glass products.
FN (Fabrinet) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $24.94B, a trailing P/E of 59.63, a beta of 1.22 versus the broader market, a 52-week range of 221.63-734.79, average daily share volume of 724K, a public-listing history dating back to 2010, approximately 14K full-time employees. These structural characteristics shape how FN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places FN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 59.63 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a cash-secured put on FN?
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 FN snapshot
As of May 15, 2026, spot at $721.92, ATM IV 80.80%, IV rank 50.57%, expected move 23.16%. The cash-secured put on FN 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 FN specifically: FN IV at 80.80% is mid-range versus its 1-year history, so the credit collected on a FN cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 23.16% (roughly $167.23 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 FN expiries trade a higher absolute premium for lower per-day decay. Position sizing on FN should anchor to the underlying notional of $721.92 per share and to the trader's directional view on FN stock.
FN cash-secured put setup
The FN 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 FN near $721.92, the first option leg uses a $690.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FN 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 FN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $690.00 | $53.65 |
FN cash-secured put risk and reward
- Net Premium / Debit
- +$5,365.00
- Max Profit (per contract)
- $5,365.00
- Max Loss (per contract)
- -$63,634.00
- Breakeven(s)
- $636.35
- Risk / Reward Ratio
- 0.084
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
FN cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on FN. 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% | -$63,634.00 |
| $159.63 | -77.9% | -$47,672.06 |
| $319.25 | -55.8% | -$31,710.12 |
| $478.87 | -33.7% | -$15,748.18 |
| $638.49 | -11.6% | +$213.76 |
| $798.11 | +10.6% | +$5,365.00 |
| $957.73 | +32.7% | +$5,365.00 |
| $1,117.35 | +54.8% | +$5,365.00 |
| $1,276.97 | +76.9% | +$5,365.00 |
| $1,436.58 | +99.0% | +$5,365.00 |
When traders use cash-secured put on FN
Cash-secured puts on FN earn premium while a trader waits to acquire FN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FN.
FN thesis for this cash-secured put
The market-implied 1-standard-deviation range for FN extends from approximately $554.69 on the downside to $889.15 on the upside. A FN cash-secured put lets a trader earn premium while waiting to acquire FN 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 FN IV rank near 50.57% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on FN should anchor more to the directional view and the expected-move geometry. As a Technology name, FN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FN-specific events.
FN 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. FN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FN alongside the broader basket even when FN-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on FN carry tail risk when realized volatility exceeds the implied move; review historical FN earnings reactions and macro stress periods before sizing. Always rebuild the position from current FN chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on FN?
- A cash-secured put on FN is the cash-secured put strategy applied to FN (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 FN stock trading near $721.92, the strikes shown on this page are snapped to the nearest listed FN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FN 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 FN cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 80.80%), the computed maximum profit is $5,365.00 per contract and the computed maximum loss is -$63,634.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FN cash-secured put?
- The breakeven for the FN cash-secured put priced on this page is roughly $636.35 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 FN market-implied 1-standard-deviation expected move is approximately 23.16%; 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 FN?
- Cash-secured puts on FN earn premium while a trader waits to acquire FN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FN.
- How does current FN implied volatility affect this cash-secured put?
- FN ATM IV is at 80.80% with IV rank near 50.57%, 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.