IR Cash-Secured Put Strategy
IR (Ingersoll Rand Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.
Ingersoll Rand Inc. provides various mission-critical air, fluid, energy, specialty vehicle and medical technologies in the United States, Europe, the Middle East, Africa, and the Asia Pacific. It operates through two segments, Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services segment designs, manufactures, markets, and services various air and gas compression, vacuum, and blower products; fluid transfer equipment and loading systems; and power tools and lifting equipment, including associated aftermarket parts, consumables, air treatment equipment, controls, other accessories, and services. The Precision and Science Technologies segment designs, manufactures, and markets a range of specialized positive displacement pumps, fluid management systems, accessories and aftermarket parts for liquid and gas dosing, transfer, dispensing, compression, sampling, pressure management and flow control in specialized or critical applications. The company's products are used in medical, laboratory, industrial manufacturing, water and wastewater, chemical processing, precision irrigation, energy, food and beverage, agriculture, and vacuum and automated liquid handling end-markets, as well as various manufacturing and industrial facilities applications. It sells through an integrated network of direct sales representatives and independent distributors under the Ingersoll Rand, Gardner Denver, Club Car, CompAir, Nash, Elmo Rietschle, Robuschi, Thomas, Milton Roy, Seepex, ARO, Emco Wheaton, Runtech Systems, Air Dimensions, Albin, Dosatron, Haskel, LMI, Maximus, MP, Oberdorfer, Welch, Williams, Zinnser Analytic, and YZ brands.
IR (Ingersoll Rand Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $27.94B, a trailing P/E of 47.68, a beta of 1.25 versus the broader market, a 52-week range of 70.97-100.96, average daily share volume of 3.4M, a public-listing history dating back to 2017, approximately 21K full-time employees. These structural characteristics shape how IR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.25 places IR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 47.68 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. IR 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 IR?
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 IR snapshot
As of May 15, 2026, spot at $70.43, ATM IV 34.80%, IV rank 52.76%, expected move 9.98%. The cash-secured put on IR 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 IR specifically: IR IV at 34.80% is mid-range versus its 1-year history, so the credit collected on a IR cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 9.98% (roughly $7.03 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 IR expiries trade a higher absolute premium for lower per-day decay. Position sizing on IR should anchor to the underlying notional of $70.43 per share and to the trader's directional view on IR stock.
IR cash-secured put setup
The IR 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 IR near $70.43, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IR 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 IR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $65.00 | $1.03 |
IR cash-secured put risk and reward
- Net Premium / Debit
- +$102.50
- Max Profit (per contract)
- $102.50
- Max Loss (per contract)
- -$6,396.50
- Breakeven(s)
- $63.98
- Risk / Reward Ratio
- 0.016
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
IR cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on IR. 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% | -$6,396.50 |
| $15.58 | -77.9% | -$4,839.36 |
| $31.15 | -55.8% | -$3,282.23 |
| $46.72 | -33.7% | -$1,725.09 |
| $62.30 | -11.5% | -$167.96 |
| $77.87 | +10.6% | +$102.50 |
| $93.44 | +32.7% | +$102.50 |
| $109.01 | +54.8% | +$102.50 |
| $124.58 | +76.9% | +$102.50 |
| $140.15 | +99.0% | +$102.50 |
When traders use cash-secured put on IR
Cash-secured puts on IR earn premium while a trader waits to acquire IR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning IR.
IR thesis for this cash-secured put
The market-implied 1-standard-deviation range for IR extends from approximately $63.40 on the downside to $77.46 on the upside. A IR cash-secured put lets a trader earn premium while waiting to acquire IR 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 IR IV rank near 52.76% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on IR should anchor more to the directional view and the expected-move geometry. As a Industrials name, IR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IR-specific events.
IR 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. IR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IR alongside the broader basket even when IR-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on IR carry tail risk when realized volatility exceeds the implied move; review historical IR earnings reactions and macro stress periods before sizing. Always rebuild the position from current IR chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on IR?
- A cash-secured put on IR is the cash-secured put strategy applied to IR (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 IR stock trading near $70.43, the strikes shown on this page are snapped to the nearest listed IR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IR 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 IR cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 34.80%), the computed maximum profit is $102.50 per contract and the computed maximum loss is -$6,396.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IR cash-secured put?
- The breakeven for the IR cash-secured put priced on this page is roughly $63.98 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 IR market-implied 1-standard-deviation expected move is approximately 9.98%; 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 IR?
- Cash-secured puts on IR earn premium while a trader waits to acquire IR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning IR.
- How does current IR implied volatility affect this cash-secured put?
- IR ATM IV is at 34.80% with IV rank near 52.76%, 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.