KD Cash-Secured Put Strategy
KD (Kyndryl Holdings, Inc.), in the Technology sector, (Information Technology Services industry), listed on NYSE.
Kyndryl Holdings, Inc. operates as a technology services company and IT infrastructure services provider worldwide. The company offers cloud services; core enterprise and cloud services; application, data, and artificial intelligence services; digital workplace services; security and resiliency services; and network services and edge services. It serves financial, telecommunications, retail, automobile, and transportation industries. The company was incorporated in 2020 and is headquartered in New York, New York.
KD (Kyndryl Holdings, Inc.) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $2.49B, a trailing P/E of 12.55, a beta of 1.79 versus the broader market, a 52-week range of 10.1-44.2, average daily share volume of 4.2M, a public-listing history dating back to 2021, approximately 80K full-time employees. These structural characteristics shape how KD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.79 indicates KD has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a cash-secured put on KD?
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 KD snapshot
As of May 14, 2026, spot at $11.09, ATM IV 59.00%, IV rank 24.69%, expected move 16.91%. The cash-secured put on KD 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 KD specifically: KD IV at 59.00% is on the cheap side of its 1-year range, which means a premium-selling KD cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 16.91% (roughly $1.88 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 KD expiries trade a higher absolute premium for lower per-day decay. Position sizing on KD should anchor to the underlying notional of $11.09 per share and to the trader's directional view on KD stock.
KD cash-secured put setup
The KD 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 KD near $11.09, the first option leg uses a $11.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KD 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 KD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $11.00 | $0.63 |
KD cash-secured put risk and reward
- Net Premium / Debit
- +$62.50
- Max Profit (per contract)
- $62.50
- Max Loss (per contract)
- -$1,036.50
- Breakeven(s)
- $10.38
- Risk / Reward Ratio
- 0.060
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
KD cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on KD. 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% | -$1,036.50 |
| $2.46 | -77.8% | -$791.40 |
| $4.91 | -55.7% | -$546.31 |
| $7.36 | -33.6% | -$301.21 |
| $9.81 | -11.5% | -$56.12 |
| $12.26 | +10.6% | +$62.50 |
| $14.72 | +32.7% | +$62.50 |
| $17.17 | +54.8% | +$62.50 |
| $19.62 | +76.9% | +$62.50 |
| $22.07 | +99.0% | +$62.50 |
When traders use cash-secured put on KD
Cash-secured puts on KD earn premium while a trader waits to acquire KD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning KD.
KD thesis for this cash-secured put
The market-implied 1-standard-deviation range for KD extends from approximately $9.21 on the downside to $12.97 on the upside. A KD cash-secured put lets a trader earn premium while waiting to acquire KD 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 KD IV rank near 24.69% 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 KD at 59.00%. As a Technology name, KD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KD-specific events.
KD 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. KD positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KD alongside the broader basket even when KD-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on KD carry tail risk when realized volatility exceeds the implied move; review historical KD earnings reactions and macro stress periods before sizing. Always rebuild the position from current KD chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on KD?
- A cash-secured put on KD is the cash-secured put strategy applied to KD (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 KD stock trading near $11.09, the strikes shown on this page are snapped to the nearest listed KD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KD 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 KD cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 59.00%), the computed maximum profit is $62.50 per contract and the computed maximum loss is -$1,036.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KD cash-secured put?
- The breakeven for the KD cash-secured put priced on this page is roughly $10.38 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 KD market-implied 1-standard-deviation expected move is approximately 16.91%; 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 KD?
- Cash-secured puts on KD earn premium while a trader waits to acquire KD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning KD.
- How does current KD implied volatility affect this cash-secured put?
- KD ATM IV is at 59.00% with IV rank near 24.69%, 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.