KN Cash-Secured Put Strategy
KN (Knowles Corporation), in the Technology sector, (Communication Equipment industry), listed on NYSE.
Knowles Corporation offers micro-acoustic microphones and balanced armature speakers, audio solutions, high performance capacitors, and radio frequency products for the consumer electronics, medtech, defense, electric vehicle, industrial, and communications markets. It operates in two segments, Audio and Precision Devices (PD). The Audio segment designs and manufactures audio products, including microphones, balanced armature speakers, and audio processors used in applications that serve the mobile, hearing health, True Wireless Stereo, Internet of Things, and computing markets. The PD segment is involved in the design and delivery of high-performance capacitor products and RF solutions that are used in applications, such as power supplies and medical implants, satellite communications, and radar systems, as well as for communications equipment. The company sells its products directly to original equipment manufacturers and to their contract manufacturers and suppliers, as well as through distributors. It has operations in Asia, the United States, Europe, other Americas, and internationally.
KN (Knowles Corporation) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $3.13B, a trailing P/E of 55.95, a beta of 1.56 versus the broader market, a 52-week range of 16.09-37.08, average daily share volume of 735K, a public-listing history dating back to 2014, approximately 6K full-time employees. These structural characteristics shape how KN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.56 indicates KN 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 55.95 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.
What is a cash-secured put on KN?
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 KN snapshot
As of May 15, 2026, spot at $35.15, ATM IV 39.30%, IV rank 5.07%, expected move 11.27%. The cash-secured put on KN 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 KN specifically: KN IV at 39.30% is on the cheap side of its 1-year range, which means a premium-selling KN cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 11.27% (roughly $3.96 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 KN expiries trade a higher absolute premium for lower per-day decay. Position sizing on KN should anchor to the underlying notional of $35.15 per share and to the trader's directional view on KN stock.
KN cash-secured put setup
The KN 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 KN near $35.15, the first option leg uses a $33.39 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KN 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 KN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $33.39 | N/A |
KN 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.
KN cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on KN. 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 KN
Cash-secured puts on KN earn premium while a trader waits to acquire KN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning KN.
KN thesis for this cash-secured put
The market-implied 1-standard-deviation range for KN extends from approximately $31.19 on the downside to $39.11 on the upside. A KN cash-secured put lets a trader earn premium while waiting to acquire KN 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 KN IV rank near 5.07% 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 KN at 39.30%. As a Technology name, KN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KN-specific events.
KN 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. KN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KN alongside the broader basket even when KN-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on KN carry tail risk when realized volatility exceeds the implied move; review historical KN earnings reactions and macro stress periods before sizing. Always rebuild the position from current KN chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on KN?
- A cash-secured put on KN is the cash-secured put strategy applied to KN (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 KN stock trading near $35.15, the strikes shown on this page are snapped to the nearest listed KN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KN 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 KN cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 39.30%), 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 KN cash-secured put?
- The breakeven for the KN 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 KN market-implied 1-standard-deviation expected move is approximately 11.27%; 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 KN?
- Cash-secured puts on KN earn premium while a trader waits to acquire KN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning KN.
- How does current KN implied volatility affect this cash-secured put?
- KN ATM IV is at 39.30% with IV rank near 5.07%, 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.