GTES Cash-Secured Put Strategy
GTES (Gates Industrial Corporation plc), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.
Gates Industrial Corporation plc manufactures and sells engineered power transmission and fluid power solutions worldwide. It operates in two segments, Power Transmission and Fluid Power. The company offers synchronous or asynchronous belts, including V-belts, CVT belts, and Micro-V belts, as well as related components, such as sprockets, pulleys, water pumps, tensioners, or other accessories; solutions for stationary and mobile drives, engine systems, personal mobility, and vertical lifts application platforms; metal drive components; and kits for automotive replacement channels. It also provides fluid power solutions comprising stationary hydraulics, mobile hydraulics, engine systems, and other industrial application platforms; and hydraulics, including hoses, tubing, and fittings, as well as assemblies. The company serves construction, agriculture, energy and resources, automotive, transportation, mobility and recreation, consumer products, and various industrial applications, such as automated manufacturing and logistics systems. It sells its engineered products under the Gates brand.
GTES (Gates Industrial Corporation plc) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $6.44B, a trailing P/E of 25.86, a beta of 1.28 versus the broader market, a 52-week range of 20.39-28.47, average daily share volume of 2.3M, a public-listing history dating back to 2018, approximately 14K full-time employees. These structural characteristics shape how GTES stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.28 places GTES 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 GTES?
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 GTES snapshot
As of May 15, 2026, spot at $24.50, ATM IV 40.40%, IV rank 51.45%, expected move 11.58%. The cash-secured put on GTES 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 98-day expiry.
Why this cash-secured put structure on GTES specifically: GTES IV at 40.40% is mid-range versus its 1-year history, so the credit collected on a GTES cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 11.58% (roughly $2.84 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GTES expiries trade a higher absolute premium for lower per-day decay. Position sizing on GTES should anchor to the underlying notional of $24.50 per share and to the trader's directional view on GTES stock.
GTES cash-secured put setup
The GTES 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 GTES near $24.50, the first option leg uses a $23.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GTES chain at a 98-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 GTES shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $23.00 | $1.40 |
GTES cash-secured put risk and reward
- Net Premium / Debit
- +$140.00
- Max Profit (per contract)
- $140.00
- Max Loss (per contract)
- -$2,159.00
- Breakeven(s)
- $21.60
- Risk / Reward Ratio
- 0.065
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
GTES cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on GTES. 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% | -$2,159.00 |
| $5.43 | -77.9% | -$1,617.40 |
| $10.84 | -55.7% | -$1,075.80 |
| $16.26 | -33.6% | -$534.21 |
| $21.67 | -11.5% | +$7.39 |
| $27.09 | +10.6% | +$140.00 |
| $32.51 | +32.7% | +$140.00 |
| $37.92 | +54.8% | +$140.00 |
| $43.34 | +76.9% | +$140.00 |
| $48.75 | +99.0% | +$140.00 |
When traders use cash-secured put on GTES
Cash-secured puts on GTES earn premium while a trader waits to acquire GTES stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GTES.
GTES thesis for this cash-secured put
The market-implied 1-standard-deviation range for GTES extends from approximately $21.66 on the downside to $27.34 on the upside. A GTES cash-secured put lets a trader earn premium while waiting to acquire GTES 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 GTES IV rank near 51.45% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on GTES should anchor more to the directional view and the expected-move geometry. As a Industrials name, GTES options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GTES-specific events.
GTES 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. GTES positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GTES alongside the broader basket even when GTES-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on GTES carry tail risk when realized volatility exceeds the implied move; review historical GTES earnings reactions and macro stress periods before sizing. Always rebuild the position from current GTES chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on GTES?
- A cash-secured put on GTES is the cash-secured put strategy applied to GTES (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 GTES stock trading near $24.50, the strikes shown on this page are snapped to the nearest listed GTES chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GTES 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 GTES cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 40.40%), the computed maximum profit is $140.00 per contract and the computed maximum loss is -$2,159.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GTES cash-secured put?
- The breakeven for the GTES cash-secured put priced on this page is roughly $21.60 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 GTES market-implied 1-standard-deviation expected move is approximately 11.58%; 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 GTES?
- Cash-secured puts on GTES earn premium while a trader waits to acquire GTES stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GTES.
- How does current GTES implied volatility affect this cash-secured put?
- GTES ATM IV is at 40.40% with IV rank near 51.45%, 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.