KE Cash-Secured Put Strategy
KE (Kimball Electronics, Inc.), in the Industrials sector, (Electrical Equipment & Parts industry), listed on NASDAQ.
Kimball Electronics, Inc. specializes in providing comprehensive contract electronics manufacturing (CEM) and an array of diversified production solutions, catering to clients across the automotive, medical, industrial, and public safety sectors. Their extensive service portfolio encompasses initial design and development support, robust supply chain management, and agile rapid prototyping alongside streamlined product introduction capabilities. Key competencies also include comprehensive product design, rigorous process validation and qualification, and the industrialization and automation of complex manufacturing workflows. The company excels in reliability testing, subjecting products to a range of environmental conditions, and is proficient in the production and testing of printed circuit board assemblies. They also handle the assembly, production, and packaging of medical devices, including disposables and other non-electronic items, as well as electronic and non-electronic drug delivery systems. Additionally, their expertise extends to the design engineering and manufacturing of automation equipment, test and inspection equipment, and precision molded plastics, complemented by software design services and holistic product life cycle management.
KE (Kimball Electronics, Inc.) trades in the Industrials sector, specifically Electrical Equipment & Parts, with a market capitalization of approximately $589.2M, a trailing P/E of 23.04, a beta of 1.22 versus the broader market, a 52-week range of 18.04-33.19, average daily share volume of 166K, a public-listing history dating back to 2014, approximately 7K full-time employees. These structural characteristics shape how KE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places KE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a cash-secured put on KE?
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 KE snapshot
As of June 30, 2026, spot at $25.39, ATM IV 110.60%, IV rank 40.73%, expected move 31.71%. The cash-secured put on KE 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 17-day expiry.
Why this cash-secured put structure on KE specifically: KE IV at 110.60% is mid-range versus its 1-year history, so the credit collected on a KE cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 31.71% (roughly $8.05 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KE expiries trade a higher absolute premium for lower per-day decay. Position sizing on KE should anchor to the underlying notional of $25.39 per share and to the trader's directional view on KE stock.
KE cash-secured put setup
The KE 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 KE near $25.39, the first option leg uses a $24.12 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KE chain at a 17-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 KE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $24.12 | N/A |
KE 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.
KE cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on KE. 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 KE
Cash-secured puts on KE earn premium while a trader waits to acquire KE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning KE.
KE thesis for this cash-secured put
The market-implied 1-standard-deviation range for KE extends from approximately $17.34 on the downside to $33.44 on the upside. A KE cash-secured put lets a trader earn premium while waiting to acquire KE 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 KE IV rank near 40.73% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on KE should anchor more to the directional view and the expected-move geometry. As a Industrials name, KE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KE-specific events.
KE 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. KE positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KE alongside the broader basket even when KE-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on KE carry tail risk when realized volatility exceeds the implied move; review historical KE earnings reactions and macro stress periods before sizing. Always rebuild the position from current KE chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on KE?
- A cash-secured put on KE is the cash-secured put strategy applied to KE (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 KE stock trading near $25.39, the strikes shown on this page are snapped to the nearest listed KE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KE 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 KE cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 110.60%), 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 KE cash-secured put?
- The breakeven for the KE 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 KE market-implied 1-standard-deviation expected move is approximately 31.71%; 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 KE?
- Cash-secured puts on KE earn premium while a trader waits to acquire KE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning KE.
- How does current KE implied volatility affect this cash-secured put?
- KE ATM IV is at 110.60% with IV rank near 40.73%, 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.