FTDR Cash-Secured Put Strategy
FTDR (Frontdoor, Inc.), in the Consumer Cyclical sector, (Personal Products & Services industry), listed on NASDAQ.
Frontdoor, Inc. operates as a U.S.-based provider of extensive home service plans. These comprehensive plans are designed to cover the repair or replacement of key components for roughly two dozen household systems and appliances. This broad coverage includes critical areas such as electrical infrastructure, plumbing, water heating units, and major kitchen equipment like refrigerators, dishwashers, and ranges/ovens/cooktops. Furthermore, it extends to electronics, swimming pools, spa components and their pumps, and central heating, ventilation, and air conditioning (HVAC) systems. Beyond its core service offerings, Frontdoor, Inc. also manages ProConnect, an on-demand business for various home service requirements, and Streem, an innovative technology platform. Streem leverages augmented reality, computer vision, and machine learning to empower home service professionals, enabling them to diagnose problems and perform repairs with enhanced speed and accuracy.
FTDR (Frontdoor, Inc.) trades in the Consumer Cyclical sector, specifically Personal Products & Services, with a market capitalization of approximately $6.01B, a trailing P/E of 21.81, a beta of 1.47 versus the broader market, a 52-week range of 48.47-93.43, average daily share volume of 602K, a public-listing history dating back to 2018, approximately 2K full-time employees. These structural characteristics shape how FTDR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.47 indicates FTDR 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 FTDR?
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.
FTDR snapshot
As of August 14, 2026, spot at $87.53, ATM IV 33.30%, IV rank 3.90%, expected move 9.55%. The cash-secured put on FTDR below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this cash-secured put structure on FTDR specifically: FTDR IV at 33.30% is on the cheap side of its 1-year range, which means a premium-selling FTDR cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.55% (roughly $8.36 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FTDR expiries trade a higher absolute premium for lower per-day decay. Position sizing on FTDR should anchor to the underlying notional of $87.53 per share and to the trader's directional view on FTDR stock.
FTDR cash-secured put setup
The FTDR 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 FTDR at $87.53 on that close, the first option leg uses a $83.15 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FTDR chain at a 35-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 FTDR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $83.15 | N/A |
FTDR 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.
FTDR cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on FTDR. 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 FTDR
Cash-secured puts on FTDR earn premium while a trader waits to acquire FTDR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FTDR.
FTDR thesis for this cash-secured put
The market-implied 1-standard-deviation range for FTDR extends from approximately $79.17 on the downside to $95.89 on the upside. A FTDR cash-secured put lets a trader earn premium while waiting to acquire FTDR 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 FTDR IV rank near 3.90% 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 FTDR at 33.30%. As a Consumer Cyclical name, FTDR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FTDR-specific events.
FTDR 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. FTDR positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FTDR alongside the broader basket even when FTDR-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on FTDR carry tail risk when realized volatility exceeds the implied move; review historical FTDR earnings reactions and macro stress periods before sizing. Always rebuild the position from current FTDR chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on FTDR?
- A cash-secured put on FTDR is the cash-secured put strategy applied to FTDR (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 FTDR stock at $87.53 on the most recent close, the strikes shown on this page are snapped to the nearest listed FTDR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FTDR 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 FTDR cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 33.30%), 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 FTDR cash-secured put?
- The breakeven for the FTDR cash-secured put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The FTDR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.55%; 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 FTDR?
- Cash-secured puts on FTDR earn premium while a trader waits to acquire FTDR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FTDR.
- How does current FTDR implied volatility affect this cash-secured put?
- FTDR ATM IV is at 33.30% with IV rank near 3.90%, 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.