GRC Cash-Secured Put Strategy
GRC (The Gorman-Rupp Company), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.
The Gorman-Rupp Company designs, manufactures, and sells pumps and pump systems in the United States and internationally. The company's products include self-priming centrifugal, standard centrifugal, magnetic drive centrifugal, axial and mixed flow, vertical turbine line shaft, submersible, high pressure booster, rotary gear, diaphragm, bellows, and oscillating pumps. Its products are used in water, wastewater, construction, dewatering, industrial, petroleum, original equipment, agriculture, fire protection, military, and other liquid-handling applications, as well as in heating, ventilating, and air conditioning applications. The company markets its products through a network of distributors, manufacturers' representatives, third-party distributor catalogs, direct sales, and commerce. The Gorman-Rupp Company was founded in 1933 and is headquartered in Mansfield, Ohio.
GRC (The Gorman-Rupp Company) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $1.99B, a trailing P/E of 33.83, a beta of 1.34 versus the broader market, a 52-week range of 34.96-79.54, average daily share volume of 169K, a public-listing history dating back to 1980, approximately 1K full-time employees. These structural characteristics shape how GRC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.34 indicates GRC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. GRC 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 GRC?
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 GRC snapshot
As of May 15, 2026, spot at $73.25, ATM IV 32.00%, IV rank 10.06%, expected move 9.17%. The cash-secured put on GRC 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 GRC specifically: GRC IV at 32.00% is on the cheap side of its 1-year range, which means a premium-selling GRC cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.17% (roughly $6.72 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 GRC expiries trade a higher absolute premium for lower per-day decay. Position sizing on GRC should anchor to the underlying notional of $73.25 per share and to the trader's directional view on GRC stock.
GRC cash-secured put setup
The GRC 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 GRC near $73.25, the first option leg uses a $69.59 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GRC 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 GRC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $69.59 | N/A |
GRC 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.
GRC cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on GRC. 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 GRC
Cash-secured puts on GRC earn premium while a trader waits to acquire GRC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GRC.
GRC thesis for this cash-secured put
The market-implied 1-standard-deviation range for GRC extends from approximately $66.53 on the downside to $79.97 on the upside. A GRC cash-secured put lets a trader earn premium while waiting to acquire GRC 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 GRC IV rank near 10.06% 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 GRC at 32.00%. As a Industrials name, GRC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GRC-specific events.
GRC 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. GRC positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GRC alongside the broader basket even when GRC-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on GRC carry tail risk when realized volatility exceeds the implied move; review historical GRC earnings reactions and macro stress periods before sizing. Always rebuild the position from current GRC chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on GRC?
- A cash-secured put on GRC is the cash-secured put strategy applied to GRC (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 GRC stock trading near $73.25, the strikes shown on this page are snapped to the nearest listed GRC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GRC 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 GRC cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 32.00%), 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 GRC cash-secured put?
- The breakeven for the GRC 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 GRC market-implied 1-standard-deviation expected move is approximately 9.17%; 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 GRC?
- Cash-secured puts on GRC earn premium while a trader waits to acquire GRC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GRC.
- How does current GRC implied volatility affect this cash-secured put?
- GRC ATM IV is at 32.00% with IV rank near 10.06%, 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.