JACK Cash-Secured Put Strategy
JACK (Jack in the Box Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.
Jack in the Box Inc. operates and franchises Jack in the Box quick-service restaurants. As of November 23, 2021, it operated and franchised approximately 2,200 Jack in the Box quick-service restaurants in 21 states and Guam. The company was founded in 1951 and is headquartered in San Diego, California.
JACK (Jack in the Box Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $244.3M, a trailing P/E of 4.48, a beta of 1.48 versus the broader market, a 52-week range of 8.92-25.34, average daily share volume of 848K, a public-listing history dating back to 1992, approximately 2K full-time employees. These structural characteristics shape how JACK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.48 indicates JACK 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 4.48 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. JACK 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 JACK?
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 JACK snapshot
As of May 15, 2026, spot at $10.81, ATM IV 76.20%, IV rank 14.74%, expected move 21.85%. The cash-secured put on JACK 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 JACK specifically: JACK IV at 76.20% is on the cheap side of its 1-year range, which means a premium-selling JACK cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 21.85% (roughly $2.36 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 JACK expiries trade a higher absolute premium for lower per-day decay. Position sizing on JACK should anchor to the underlying notional of $10.81 per share and to the trader's directional view on JACK stock.
JACK cash-secured put setup
The JACK 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 JACK near $10.81, the first option leg uses a $10.27 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed JACK 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 JACK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $10.27 | N/A |
JACK cash-secured put risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
JACK cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on JACK. 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.
When traders use cash-secured put on JACK
Cash-secured puts on JACK earn premium while a trader waits to acquire JACK stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning JACK.
JACK thesis for this cash-secured put
The market-implied 1-standard-deviation range for JACK extends from approximately $8.45 on the downside to $13.17 on the upside. A JACK cash-secured put lets a trader earn premium while waiting to acquire JACK 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 JACK IV rank near 14.74% 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 JACK at 76.20%. As a Consumer Cyclical name, JACK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to JACK-specific events.
JACK 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. JACK positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move JACK alongside the broader basket even when JACK-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on JACK carry tail risk when realized volatility exceeds the implied move; review historical JACK earnings reactions and macro stress periods before sizing. Always rebuild the position from current JACK chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on JACK?
- A cash-secured put on JACK is the cash-secured put strategy applied to JACK (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 JACK stock trading near $10.81, the strikes shown on this page are snapped to the nearest listed JACK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are JACK 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 JACK cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 76.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a JACK cash-secured put?
- The breakeven for the JACK cash-secured put priced on this page is no defined breakeven on the modeled curve 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 JACK market-implied 1-standard-deviation expected move is approximately 21.85%; 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 JACK?
- Cash-secured puts on JACK earn premium while a trader waits to acquire JACK stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning JACK.
- How does current JACK implied volatility affect this cash-secured put?
- JACK ATM IV is at 76.20% with IV rank near 14.74%, 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.