GT Cash-Secured Put Strategy
GT (The Goodyear Tire & Rubber Company), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.
The Goodyear Tire & Rubber Company, together with its subsidiaries, develops, manufactures, distributes, and sells tires and related products and services worldwide. It offers various lines of tires for automobiles, trucks, buses, aircraft, motorcycles, earthmoving equipment, and mining and industrial equipment under the Goodyear, Cooper, Dunlop, Kelly, Debica, Sava, Fulda, Mastercraft, Roadmaster, and various other house brands, as well as under the private-label brands. The company also retreads truck, aviation, and off-the-road tires; manufactures and sells tread rubber and other tire retreading materials; sells chemical and natural rubber products; and provides automotive and commercial truck maintenance and repair services, and miscellaneous other products and services. It operates approximately 1,000 retail outlets, which offer products for retail sale, and provides repair and other services. The company sells its products worldwide through a network of independent dealers, regional distributors, retail outlets, and retailers. The Goodyear Tire & Rubber Company was incorporated in 1898 and is headquartered in Akron, Ohio.
GT (The Goodyear Tire & Rubber Company) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $1.67B, a beta of 1.18 versus the broader market, a 52-week range of 5.73-12.03, average daily share volume of 8.3M, a public-listing history dating back to 1927, approximately 68K full-time employees. These structural characteristics shape how GT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.18 places GT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a cash-secured put on GT?
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 GT snapshot
As of May 15, 2026, spot at $5.67, ATM IV 54.00%, IV rank 10.46%, expected move 15.48%. The cash-secured put on GT 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 GT specifically: GT IV at 54.00% is on the cheap side of its 1-year range, which means a premium-selling GT cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 15.48% (roughly $0.88 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 GT expiries trade a higher absolute premium for lower per-day decay. Position sizing on GT should anchor to the underlying notional of $5.67 per share and to the trader's directional view on GT stock.
GT cash-secured put setup
The GT 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 GT near $5.67, the first option leg uses a $5.39 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GT 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 GT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $5.39 | N/A |
GT 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.
GT cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on GT. 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 GT
Cash-secured puts on GT earn premium while a trader waits to acquire GT stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GT.
GT thesis for this cash-secured put
The market-implied 1-standard-deviation range for GT extends from approximately $4.79 on the downside to $6.55 on the upside. A GT cash-secured put lets a trader earn premium while waiting to acquire GT 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 GT IV rank near 10.46% 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 GT at 54.00%. As a Consumer Cyclical name, GT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GT-specific events.
GT 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. GT positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GT alongside the broader basket even when GT-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on GT carry tail risk when realized volatility exceeds the implied move; review historical GT earnings reactions and macro stress periods before sizing. Always rebuild the position from current GT chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on GT?
- A cash-secured put on GT is the cash-secured put strategy applied to GT (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 GT stock trading near $5.67, the strikes shown on this page are snapped to the nearest listed GT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GT 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 GT cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 54.00%), 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 GT cash-secured put?
- The breakeven for the GT 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 GT market-implied 1-standard-deviation expected move is approximately 15.48%; 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 GT?
- Cash-secured puts on GT earn premium while a trader waits to acquire GT stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GT.
- How does current GT implied volatility affect this cash-secured put?
- GT ATM IV is at 54.00% with IV rank near 10.46%, 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.