IAG Cash-Secured Put Strategy
IAG (IAMGOLD Corporation), in the Basic Materials sector, (Gold industry), listed on NYSE.
IAMGOLD Corporation, through its subsidiaries, explores, develops, and operates gold mining properties in North America, South America, and West Africa. The company owns interests in the Rosebel mine located in Suriname, South America; the Essakane mine situated in Burkina Faso and Boto gold project located in Senegal, West Africa; and Westwood mine, covers an area of 1,925 hectare and located in Quebec and the Côté gold project, which covers an area of 586 square kilometer located in Ontario, Canada. Its exploration and development projects include the Pitangui project in Brazil; the Karita project located in Guinea; the Diakha-Siribaya project situated in Mali; and the Nelligan and Monster Lake projects located in Quebec, Canada. IAMGOLD Corporation was incorporated in 1990 and is headquartered in Toronto, Canada.
IAG (IAMGOLD Corporation) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $11.06B, a trailing P/E of 10.92, a beta of 2.21 versus the broader market, a 52-week range of 6.06-24.87, average daily share volume of 7.6M, a public-listing history dating back to 2003, approximately 4K full-time employees. These structural characteristics shape how IAG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.21 indicates IAG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 10.92 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a cash-secured put on IAG?
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 IAG snapshot
As of May 15, 2026, spot at $16.98, ATM IV 53.10%, IV rank 38.57%, expected move 15.22%. The cash-secured put on IAG 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 IAG specifically: IAG IV at 53.10% is mid-range versus its 1-year history, so the credit collected on a IAG cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 15.22% (roughly $2.58 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 IAG expiries trade a higher absolute premium for lower per-day decay. Position sizing on IAG should anchor to the underlying notional of $16.98 per share and to the trader's directional view on IAG stock.
IAG cash-secured put setup
The IAG 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 IAG near $16.98, the first option leg uses a $16.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IAG 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 IAG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $16.00 | $0.63 |
IAG cash-secured put risk and reward
- Net Premium / Debit
- +$62.50
- Max Profit (per contract)
- $62.50
- Max Loss (per contract)
- -$1,536.50
- Breakeven(s)
- $15.38
- Risk / Reward Ratio
- 0.041
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
IAG cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on IAG. 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 | -99.9% | -$1,536.50 |
| $3.76 | -77.8% | -$1,161.17 |
| $7.52 | -55.7% | -$785.85 |
| $11.27 | -33.6% | -$410.52 |
| $15.02 | -11.5% | -$35.19 |
| $18.78 | +10.6% | +$62.50 |
| $22.53 | +32.7% | +$62.50 |
| $26.28 | +54.8% | +$62.50 |
| $30.04 | +76.9% | +$62.50 |
| $33.79 | +99.0% | +$62.50 |
When traders use cash-secured put on IAG
Cash-secured puts on IAG earn premium while a trader waits to acquire IAG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning IAG.
IAG thesis for this cash-secured put
The market-implied 1-standard-deviation range for IAG extends from approximately $14.40 on the downside to $19.56 on the upside. A IAG cash-secured put lets a trader earn premium while waiting to acquire IAG 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 IAG IV rank near 38.57% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on IAG should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, IAG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IAG-specific events.
IAG 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. IAG positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IAG alongside the broader basket even when IAG-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on IAG carry tail risk when realized volatility exceeds the implied move; review historical IAG earnings reactions and macro stress periods before sizing. Always rebuild the position from current IAG chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on IAG?
- A cash-secured put on IAG is the cash-secured put strategy applied to IAG (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 IAG stock trading near $16.98, the strikes shown on this page are snapped to the nearest listed IAG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IAG 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 IAG cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 53.10%), the computed maximum profit is $62.50 per contract and the computed maximum loss is -$1,536.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IAG cash-secured put?
- The breakeven for the IAG cash-secured put priced on this page is roughly $15.38 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 IAG market-implied 1-standard-deviation expected move is approximately 15.22%; 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 IAG?
- Cash-secured puts on IAG earn premium while a trader waits to acquire IAG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning IAG.
- How does current IAG implied volatility affect this cash-secured put?
- IAG ATM IV is at 53.10% with IV rank near 38.57%, 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.