GE Cash-Secured Put Strategy
GE (GE Aerospace), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.
Based in Evendale, Ohio, GE Aerospace is a prominent American aviation enterprise with roots tracing back to its 1878 founding by Thomas Alva Edison. The company specializes in manufacturing and supplying jet and turboprop engines, along with integrated systems, for an extensive range of aircraft, including those in commercial, military, business, and general aviation use. Its robust brand lineup features Avio Aero, Unison, GE Additive, and Dowty Propellers. GE Aerospace organizes its activities into two core segments: Commercial Engines & Services, and Defense & Propulsion Technologies. The Commercial Engines & Services division oversees the design, development, production, and maintenance of jet engines for commercial airframes, business aviation, and aeroderivative applications. Meanwhile, the Defense & Propulsion Technologies segment is dedicated to providing vital engines and critical systems for defense-related aerospace needs.
GE (GE Aerospace) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $385.54B, a trailing P/E of 44.22, a beta of 1.38 versus the broader market, a 52-week range of 243.34-379.67, average daily share volume of 5.8M, a public-listing history dating back to 1962, approximately 53K full-time employees. These structural characteristics shape how GE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.38 indicates GE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 44.22 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. GE 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 GE?
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 GE snapshot
As of June 30, 2026, spot at $370.84, ATM IV 39.36%, IV rank 66.57%, expected move 11.28%. The cash-secured put on GE 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 31-day expiry.
Why this cash-secured put structure on GE specifically: GE IV at 39.36% is mid-range versus its 1-year history, so the credit collected on a GE cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 11.28% (roughly $41.84 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GE expiries trade a higher absolute premium for lower per-day decay. Position sizing on GE should anchor to the underlying notional of $370.84 per share and to the trader's directional view on GE stock.
GE cash-secured put setup
The GE 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 GE near $370.84, the first option leg uses a $350.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GE chain at a 31-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 GE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $350.00 | $8.30 |
GE cash-secured put risk and reward
- Net Premium / Debit
- +$830.00
- Max Profit (per contract)
- $830.00
- Max Loss (per contract)
- -$34,169.00
- Breakeven(s)
- $341.70
- Risk / Reward Ratio
- 0.024
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
GE cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on GE. 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% | -$34,169.00 |
| $82.00 | -77.9% | -$25,969.63 |
| $164.00 | -55.8% | -$17,770.27 |
| $245.99 | -33.7% | -$9,570.90 |
| $327.98 | -11.6% | -$1,371.53 |
| $409.98 | +10.6% | +$830.00 |
| $491.97 | +32.7% | +$830.00 |
| $573.97 | +54.8% | +$830.00 |
| $655.96 | +76.9% | +$830.00 |
| $737.95 | +99.0% | +$830.00 |
When traders use cash-secured put on GE
Cash-secured puts on GE earn premium while a trader waits to acquire GE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GE.
GE thesis for this cash-secured put
The market-implied 1-standard-deviation range for GE extends from approximately $329.00 on the downside to $412.68 on the upside. A GE cash-secured put lets a trader earn premium while waiting to acquire GE 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 GE IV rank near 66.57% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on GE should anchor more to the directional view and the expected-move geometry. As a Industrials name, GE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GE-specific events.
GE 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. GE positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GE alongside the broader basket even when GE-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on GE carry tail risk when realized volatility exceeds the implied move; review historical GE earnings reactions and macro stress periods before sizing. Always rebuild the position from current GE chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on GE?
- A cash-secured put on GE is the cash-secured put strategy applied to GE (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 GE stock trading near $370.84, the strikes shown on this page are snapped to the nearest listed GE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GE 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 GE cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 39.36%), the computed maximum profit is $830.00 per contract and the computed maximum loss is -$34,169.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GE cash-secured put?
- The breakeven for the GE cash-secured put priced on this page is roughly $341.70 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 GE market-implied 1-standard-deviation expected move is approximately 11.28%; 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 GE?
- Cash-secured puts on GE earn premium while a trader waits to acquire GE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GE.
- How does current GE implied volatility affect this cash-secured put?
- GE ATM IV is at 39.36% with IV rank near 66.57%, 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.