GVA Cash-Secured Put Strategy
GVA (Granite Construction Incorporated), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.
Granite Construction Incorporated operates as an infrastructure contractor and a construction materials producer in the United States. It operates through two segments, Construction and Materials segments. The Construction segment engages in the construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, aqueducts, infrastructure, and site development for use by the public. It also focuses on water-related construction for municipal agencies, commercial water suppliers, industrial facilities, and energy companies. The company also constructs various complex projects, including infrastructure/site development, mining, public safety, tunnel, solar, and power projects. The Materials segment is involved in the production of aggregates and asphalt for internal use, as well as for sale to third parties.
GVA (Granite Construction Incorporated) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $6.26B, a trailing P/E of 33.68, a beta of 1.35 versus the broader market, a 52-week range of 84.45-145, average daily share volume of 617K, a public-listing history dating back to 1990, approximately 2K full-time employees. These structural characteristics shape how GVA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.35 indicates GVA has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. GVA 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 GVA?
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 GVA snapshot
As of May 15, 2026, spot at $138.57, ATM IV 29.70%, IV rank 35.46%, expected move 8.51%. The cash-secured put on GVA 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 GVA specifically: GVA IV at 29.70% is mid-range versus its 1-year history, so the credit collected on a GVA cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 8.51% (roughly $11.80 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 GVA expiries trade a higher absolute premium for lower per-day decay. Position sizing on GVA should anchor to the underlying notional of $138.57 per share and to the trader's directional view on GVA stock.
GVA cash-secured put setup
The GVA 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 GVA near $138.57, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GVA 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 GVA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $130.00 | $1.45 |
GVA cash-secured put risk and reward
- Net Premium / Debit
- +$145.00
- Max Profit (per contract)
- $145.00
- Max Loss (per contract)
- -$12,854.00
- Breakeven(s)
- $128.55
- Risk / Reward Ratio
- 0.011
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
GVA cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on GVA. 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% | -$12,854.00 |
| $30.65 | -77.9% | -$9,790.25 |
| $61.28 | -55.8% | -$6,726.50 |
| $91.92 | -33.7% | -$3,662.75 |
| $122.56 | -11.6% | -$599.01 |
| $153.20 | +10.6% | +$145.00 |
| $183.83 | +32.7% | +$145.00 |
| $214.47 | +54.8% | +$145.00 |
| $245.11 | +76.9% | +$145.00 |
| $275.75 | +99.0% | +$145.00 |
When traders use cash-secured put on GVA
Cash-secured puts on GVA earn premium while a trader waits to acquire GVA stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GVA.
GVA thesis for this cash-secured put
The market-implied 1-standard-deviation range for GVA extends from approximately $126.77 on the downside to $150.37 on the upside. A GVA cash-secured put lets a trader earn premium while waiting to acquire GVA 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 GVA IV rank near 35.46% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on GVA should anchor more to the directional view and the expected-move geometry. As a Industrials name, GVA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GVA-specific events.
GVA 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. GVA positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GVA alongside the broader basket even when GVA-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on GVA carry tail risk when realized volatility exceeds the implied move; review historical GVA earnings reactions and macro stress periods before sizing. Always rebuild the position from current GVA chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on GVA?
- A cash-secured put on GVA is the cash-secured put strategy applied to GVA (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 GVA stock trading near $138.57, the strikes shown on this page are snapped to the nearest listed GVA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GVA 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 GVA cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 29.70%), the computed maximum profit is $145.00 per contract and the computed maximum loss is -$12,854.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GVA cash-secured put?
- The breakeven for the GVA cash-secured put priced on this page is roughly $128.55 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 GVA market-implied 1-standard-deviation expected move is approximately 8.51%; 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 GVA?
- Cash-secured puts on GVA earn premium while a trader waits to acquire GVA stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GVA.
- How does current GVA implied volatility affect this cash-secured put?
- GVA ATM IV is at 29.70% with IV rank near 35.46%, 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.