How are GM 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 GM cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 41.26%), the computed maximum profit is $193.50 per contract and the computed maximum loss is -$7,105.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GM cash-secured put?

The breakeven for the GM cash-secured put priced on this page is roughly $71.07 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 GM market-implied 1-standard-deviation expected move is approximately 11.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GM implied volatility affect this cash-secured put?

GM ATM IV is at 41.26% with IV rank near 72.91%, 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.

GM Cash-Secured Put Strategy

GM (General Motors Company), in the Consumer Cyclical sector, (Auto - Manufacturers industry), listed on NYSE.

General Motors Company, a prominent global automotive enterprise, is engaged in the design, manufacturing, and distribution of a wide array of vehicles—including trucks, crossovers (SUVs), and passenger cars—along with related parts and accessories. Its expansive reach covers numerous regions such as North America, the Asia Pacific, the Middle East, Africa, South America, with significant operations in the United States and China. The company organizes its business into distinct segments: GM North America, GM International, Cruise, and GM Financial. It markets its diverse vehicle lineup under well-known brand names like Buick, Cadillac, Chevrolet, GMC, Holden, Baojun, and Wuling. Beyond selling to individual consumers through dealerships, GM also supplies its vehicles—including specialized models—to a variety of fleet clients, such as daily rental companies, commercial businesses, leasing firms, and government agencies. GM further extends its offerings with a comprehensive suite of advanced services for both retail and fleet customers.

GM (General Motors Company) trades in the Consumer Cyclical sector, specifically Auto - Manufacturers, with a market capitalization of approximately $70.42B, a trailing P/E of 28.27, a beta of 1.30 versus the broader market, a 52-week range of 48.8-87.62, average daily share volume of 7.6M, a public-listing history dating back to 2010, approximately 162K full-time employees. These structural characteristics shape how GM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.30 places GM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. GM 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 GM?

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 GM snapshot

As of June 30, 2026, spot at $76.96, ATM IV 41.26%, IV rank 72.91%, expected move 11.83%. The cash-secured put on GM 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 GM specifically: GM IV at 41.26% is rich versus its 1-year range, which favors premium-selling structures like a GM cash-secured put, with a market-implied 1-standard-deviation move of approximately 11.83% (roughly $9.10 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 GM expiries trade a higher absolute premium for lower per-day decay. Position sizing on GM should anchor to the underlying notional of $76.96 per share and to the trader's directional view on GM stock.

GM cash-secured put setup

The GM 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 GM near $76.96, the first option leg uses a $73.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GM 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 GM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$73.00	$1.94

GM cash-secured put risk and reward

Net Premium / Debit: +$193.50
Max Profit (per contract): $193.50
Max Loss (per contract): -$7,105.50
Breakeven(s): $71.07
Risk / Reward Ratio: 0.027

Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.

GM cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on GM. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$7,105.50
$17.03	-77.9%	-$5,403.98
$34.04	-55.8%	-$3,702.46
$51.06	-33.7%	-$2,000.95
$68.07	-11.6%	-$299.43
$85.09	+10.6%	+$193.50
$102.10	+32.7%	+$193.50
$119.12	+54.8%	+$193.50
$136.13	+76.9%	+$193.50
$153.15	+99.0%	+$193.50

When traders use cash-secured put on GM

Cash-secured puts on GM earn premium while a trader waits to acquire GM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GM.

GM thesis for this cash-secured put

The market-implied 1-standard-deviation range for GM extends from approximately $67.86 on the downside to $86.06 on the upside. A GM cash-secured put lets a trader earn premium while waiting to acquire GM 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 GM IV rank near 72.91% 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 GM at 41.26%. As a Consumer Cyclical name, GM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GM-specific events.

GM 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. GM positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GM alongside the broader basket even when GM-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on GM carry tail risk when realized volatility exceeds the implied move; review historical GM earnings reactions and macro stress periods before sizing. Always rebuild the position from current GM chain quotes before placing a trade.

Frequently asked questions

What is a cash-secured put on GM?: A cash-secured put on GM is the cash-secured put strategy applied to GM (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 GM stock trading near $76.96, the strikes shown on this page are snapped to the nearest listed GM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GM 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 GM cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 41.26%), the computed maximum profit is $193.50 per contract and the computed maximum loss is -$7,105.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GM cash-secured put?: The breakeven for the GM cash-secured put priced on this page is roughly $71.07 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 GM market-implied 1-standard-deviation expected move is approximately 11.83%; 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 GM?: Cash-secured puts on GM earn premium while a trader waits to acquire GM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GM.
How does current GM implied volatility affect this cash-secured put?: GM ATM IV is at 41.26% with IV rank near 72.91%, 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.