KBR Cash-Secured Put Strategy
KBR (KBR, Inc.), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.
KBR, Inc. provides scientific, technology, and engineering solutions to governments and commercial customers worldwide. The company operates through Government Solutions and Sustainable Technology Solutions segments. The Government Solutions segment offers life-cycle support solutions to defense, intelligence, space, aviation, and other programs and missions for military and other government agencies in the United States, the United Kingdom, and Australia. Its services cover research and development, advanced prototyping, acquisition support, systems engineering, cyber analytics, space domain awareness, test and evaluation, systems integration and program management, global supply chain management, and operations readiness and support, as well as command, control, communications, computers, intelligence, surveillance, and reconnaissance services. This segment also provides various professional advisory services to deliver high-end systems engineering, systems assurance, and technology to customers across the defense, energy, and critical infrastructure sectors. The Sustainable Technology Solutions segment holds a portfolio of approximately 70 proprietary process technologies for ammonia/syngas/fertilizers, chemical/petrochemicals, clean refining, and circular process/circular economy solutions.
KBR (KBR, Inc.) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $3.87B, a trailing P/E of 9.66, a beta of 0.47 versus the broader market, a 52-week range of 30.415-56.4, average daily share volume of 1.6M, a public-listing history dating back to 2006, approximately 38K full-time employees. These structural characteristics shape how KBR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.47 indicates KBR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 9.66 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. KBR 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 KBR?
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 KBR snapshot
As of May 14, 2026, spot at $30.88, ATM IV 34.90%, IV rank 4.71%, expected move 10.01%. The cash-secured put on KBR 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 245-day expiry.
Why this cash-secured put structure on KBR specifically: KBR IV at 34.90% is on the cheap side of its 1-year range, which means a premium-selling KBR cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.01% (roughly $3.09 on the underlying). The 245-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KBR expiries trade a higher absolute premium for lower per-day decay. Position sizing on KBR should anchor to the underlying notional of $30.88 per share and to the trader's directional view on KBR stock.
KBR cash-secured put setup
The KBR 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 KBR near $30.88, the first option leg uses a $30.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KBR chain at a 245-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 KBR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $30.00 | $3.15 |
KBR cash-secured put risk and reward
- Net Premium / Debit
- +$315.00
- Max Profit (per contract)
- $315.00
- Max Loss (per contract)
- -$2,684.00
- Breakeven(s)
- $26.85
- Risk / Reward Ratio
- 0.117
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
KBR cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on KBR. 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% | -$2,684.00 |
| $6.84 | -77.9% | -$2,001.34 |
| $13.66 | -55.8% | -$1,318.67 |
| $20.49 | -33.6% | -$636.01 |
| $27.32 | -11.5% | +$46.65 |
| $34.14 | +10.6% | +$315.00 |
| $40.97 | +32.7% | +$315.00 |
| $47.80 | +54.8% | +$315.00 |
| $54.62 | +76.9% | +$315.00 |
| $61.45 | +99.0% | +$315.00 |
When traders use cash-secured put on KBR
Cash-secured puts on KBR earn premium while a trader waits to acquire KBR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning KBR.
KBR thesis for this cash-secured put
The market-implied 1-standard-deviation range for KBR extends from approximately $27.79 on the downside to $33.97 on the upside. A KBR cash-secured put lets a trader earn premium while waiting to acquire KBR 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 KBR IV rank near 4.71% 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 KBR at 34.90%. As a Industrials name, KBR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KBR-specific events.
KBR 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. KBR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KBR alongside the broader basket even when KBR-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on KBR carry tail risk when realized volatility exceeds the implied move; review historical KBR earnings reactions and macro stress periods before sizing. Always rebuild the position from current KBR chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on KBR?
- A cash-secured put on KBR is the cash-secured put strategy applied to KBR (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 KBR stock trading near $30.88, the strikes shown on this page are snapped to the nearest listed KBR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KBR 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 KBR cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 34.90%), the computed maximum profit is $315.00 per contract and the computed maximum loss is -$2,684.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KBR cash-secured put?
- The breakeven for the KBR cash-secured put priced on this page is roughly $26.85 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 KBR market-implied 1-standard-deviation expected move is approximately 10.01%; 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 KBR?
- Cash-secured puts on KBR earn premium while a trader waits to acquire KBR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning KBR.
- How does current KBR implied volatility affect this cash-secured put?
- KBR ATM IV is at 34.90% with IV rank near 4.71%, 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.