GTX Cash-Secured Put Strategy
GTX (Garrett Motion Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.
Garrett Motion Inc., together with its subsidiaries, designs, manufactures, and sells turbocharger and electric-boosting technologies for light and commercial vehicle original equipment manufacturers worldwide. The company offers light vehicle gasoline and diesel, and commercial vehicle turbochargers; and provides automotive software solutions. It offers its products in the aftermarket through distributors. Garrett Motion Inc. was incorporated in 2018 and is headquartered in Rolle, Switzerland.
GTX (Garrett Motion Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $5.87B, a trailing P/E of 17.30, a beta of 0.70 versus the broader market, a 52-week range of 9.57-31.58, average daily share volume of 2.5M, a public-listing history dating back to 2018, approximately 7K full-time employees. These structural characteristics shape how GTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.70 indicates GTX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. GTX 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 GTX?
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 GTX snapshot
As of May 15, 2026, spot at $30.98, ATM IV 57.00%, IV rank 10.39%, expected move 16.34%. The cash-secured put on GTX 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 GTX specifically: GTX IV at 57.00% is on the cheap side of its 1-year range, which means a premium-selling GTX cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 16.34% (roughly $5.06 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 GTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on GTX should anchor to the underlying notional of $30.98 per share and to the trader's directional view on GTX stock.
GTX cash-secured put setup
The GTX 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 GTX near $30.98, the first option leg uses a $29.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GTX 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 GTX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $29.00 | $0.85 |
GTX cash-secured put risk and reward
- Net Premium / Debit
- +$85.00
- Max Profit (per contract)
- $85.00
- Max Loss (per contract)
- -$2,814.00
- Breakeven(s)
- $28.15
- Risk / Reward Ratio
- 0.030
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
GTX cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on GTX. 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% | -$2,814.00 |
| $6.86 | -77.9% | -$2,129.13 |
| $13.71 | -55.8% | -$1,444.25 |
| $20.56 | -33.6% | -$759.38 |
| $27.40 | -11.5% | -$74.50 |
| $34.25 | +10.6% | +$85.00 |
| $41.10 | +32.7% | +$85.00 |
| $47.95 | +54.8% | +$85.00 |
| $54.80 | +76.9% | +$85.00 |
| $61.65 | +99.0% | +$85.00 |
When traders use cash-secured put on GTX
Cash-secured puts on GTX earn premium while a trader waits to acquire GTX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GTX.
GTX thesis for this cash-secured put
The market-implied 1-standard-deviation range for GTX extends from approximately $25.92 on the downside to $36.04 on the upside. A GTX cash-secured put lets a trader earn premium while waiting to acquire GTX 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 GTX IV rank near 10.39% 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 GTX at 57.00%. As a Consumer Cyclical name, GTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GTX-specific events.
GTX 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. GTX positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GTX alongside the broader basket even when GTX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on GTX carry tail risk when realized volatility exceeds the implied move; review historical GTX earnings reactions and macro stress periods before sizing. Always rebuild the position from current GTX chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on GTX?
- A cash-secured put on GTX is the cash-secured put strategy applied to GTX (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 GTX stock trading near $30.98, the strikes shown on this page are snapped to the nearest listed GTX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GTX 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 GTX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 57.00%), the computed maximum profit is $85.00 per contract and the computed maximum loss is -$2,814.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GTX cash-secured put?
- The breakeven for the GTX cash-secured put priced on this page is roughly $28.15 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 GTX market-implied 1-standard-deviation expected move is approximately 16.34%; 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 GTX?
- Cash-secured puts on GTX earn premium while a trader waits to acquire GTX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GTX.
- How does current GTX implied volatility affect this cash-secured put?
- GTX ATM IV is at 57.00% with IV rank near 10.39%, 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.