GWRE Cash-Secured Put Strategy
GWRE (Guidewire Software, Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.
Guidewire Software, Inc. is a global supplier of software solutions tailored for the property and casualty insurance industry. Its primary offering is Guidewire InsuranceSuite, a comprehensive platform that incorporates core applications like PolicyCenter, BillingCenter, and ClaimCenter. The company also furnishes Guidewire InsuranceNow, a cloud-native platform providing integrated policy, billing, and claims administration for insurers, alongside a self-managed version of the InsuranceSuite. Guidewire's product portfolio extends to specialized management tools, including Rating Management for accurate insurance product pricing, Reinsurance Management for executing rules-based reinsurance strategies throughout underwriting and claims processes, Client Data Management for effective utilization of customer information, and Product Content Management, which provides software tools and standardized templates to streamline the introduction and modification of insurance products. Further innovative solutions encompass Guidewire Underwriting Management, a cloud-based business application; AppReader, designed for efficient submission intake; a specialized Guidewire ClaimCenter Package that supports the unique claims workflows of the London Market; Digital Engagement Applications enabling insurers to deliver seamless digital experiences to customers, agents, and vendors across various devices; and Guidewire for Salesforce, which integrates crucial customer policy and claims data. Additionally, the company provides a robust data and analytics suite, featuring cloud-native Predictive Analytics applications, Risk Insights to help insurers evaluate emerging risks, Business Intelligence tools for performance measurement, DataHub as an operational data store, and InfoCenter for business intelligence warehousing.
GWRE (Guidewire Software, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $10.11B, a trailing P/E of 64.32, a beta of 0.92 versus the broader market, a 52-week range of 102.3-272.6, average daily share volume of 1.7M, a public-listing history dating back to 2012, approximately 4K full-time employees. These structural characteristics shape how GWRE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places GWRE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 64.32 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a cash-secured put on GWRE?
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 GWRE snapshot
As of June 29, 2026, spot at $120.66, ATM IV 59.80%, IV rank 41.65%, expected move 17.14%. The cash-secured put on GWRE 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 18-day expiry.
Why this cash-secured put structure on GWRE specifically: GWRE IV at 59.80% is mid-range versus its 1-year history, so the credit collected on a GWRE cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 17.14% (roughly $20.69 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GWRE expiries trade a higher absolute premium for lower per-day decay. Position sizing on GWRE should anchor to the underlying notional of $120.66 per share and to the trader's directional view on GWRE stock.
GWRE cash-secured put setup
The GWRE 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 GWRE near $120.66, the first option leg uses a $115.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GWRE chain at a 18-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 GWRE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $115.00 | $3.90 |
GWRE cash-secured put risk and reward
- Net Premium / Debit
- +$390.00
- Max Profit (per contract)
- $390.00
- Max Loss (per contract)
- -$11,109.00
- Breakeven(s)
- $111.10
- Risk / Reward Ratio
- 0.035
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
GWRE cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on GWRE. 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% | -$11,109.00 |
| $26.69 | -77.9% | -$8,441.25 |
| $53.36 | -55.8% | -$5,773.50 |
| $80.04 | -33.7% | -$3,105.75 |
| $106.72 | -11.6% | -$438.01 |
| $133.40 | +10.6% | +$390.00 |
| $160.07 | +32.7% | +$390.00 |
| $186.75 | +54.8% | +$390.00 |
| $213.43 | +76.9% | +$390.00 |
| $240.11 | +99.0% | +$390.00 |
When traders use cash-secured put on GWRE
Cash-secured puts on GWRE earn premium while a trader waits to acquire GWRE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GWRE.
GWRE thesis for this cash-secured put
The market-implied 1-standard-deviation range for GWRE extends from approximately $99.97 on the downside to $141.35 on the upside. A GWRE cash-secured put lets a trader earn premium while waiting to acquire GWRE 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 GWRE IV rank near 41.65% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on GWRE should anchor more to the directional view and the expected-move geometry. As a Technology name, GWRE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GWRE-specific events.
GWRE 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. GWRE positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GWRE alongside the broader basket even when GWRE-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on GWRE carry tail risk when realized volatility exceeds the implied move; review historical GWRE earnings reactions and macro stress periods before sizing. Always rebuild the position from current GWRE chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on GWRE?
- A cash-secured put on GWRE is the cash-secured put strategy applied to GWRE (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 GWRE stock trading near $120.66, the strikes shown on this page are snapped to the nearest listed GWRE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GWRE 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 GWRE cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 59.80%), the computed maximum profit is $390.00 per contract and the computed maximum loss is -$11,109.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GWRE cash-secured put?
- The breakeven for the GWRE cash-secured put priced on this page is roughly $111.10 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 GWRE market-implied 1-standard-deviation expected move is approximately 17.14%; 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 GWRE?
- Cash-secured puts on GWRE earn premium while a trader waits to acquire GWRE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GWRE.
- How does current GWRE implied volatility affect this cash-secured put?
- GWRE ATM IV is at 59.80% with IV rank near 41.65%, 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.