KRO Cash-Secured Put Strategy
KRO (Kronos Worldwide, Inc.), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NYSE.
Kronos Worldwide, Inc. produces and markets titanium dioxide pigments (TiO2) in Europe, North America, the Asia Pacific, and internationally. The company produces TiO2 in two crystalline forms, rutile and anatase to impart whiteness, brightness, opacity, and durability for various products, including paints, coatings, plastics, paper, fibers, and ceramics, as well as for various specialty products, such as inks, foods, and cosmetics. It also produces ilmenite, a raw material used directly as a feedstock by sulfate-process TiO2 plants; iron-based chemicals, which are used as treatment and conditioning agents for industrial effluents and municipal wastewater, as well as in the manufacture of iron pigments, cement, and agricultural products; specialty chemicals for use in the formulation of pearlescent pigments, and production of electroceramic capacitors for cell phones and other electronic devices, as well as for use in pearlescent pigments, natural gas pipe, and other specialty applications. In addition, the company provides technical services for its products. It sells its products under the KRONOS brand through agents and distributors to paint, plastics, decorative laminate, and paper manufacturers. The company was founded in 1916 and is headquartered in Dallas, Texas.
KRO (Kronos Worldwide, Inc.) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $830.7M, a beta of 0.98 versus the broader market, a 52-week range of 4.08-7.89, average daily share volume of 344K, a public-listing history dating back to 2003, approximately 3K full-time employees. These structural characteristics shape how KRO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places KRO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. KRO 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 KRO?
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 KRO snapshot
As of May 14, 2026, spot at $7.38, ATM IV 65.00%, IV rank 25.94%, expected move 18.63%. The cash-secured put on KRO 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 35-day expiry.
Why this cash-secured put structure on KRO specifically: KRO IV at 65.00% is on the cheap side of its 1-year range, which means a premium-selling KRO cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 18.63% (roughly $1.38 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KRO expiries trade a higher absolute premium for lower per-day decay. Position sizing on KRO should anchor to the underlying notional of $7.38 per share and to the trader's directional view on KRO stock.
KRO cash-secured put setup
The KRO 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 KRO near $7.38, the first option leg uses a $7.01 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KRO chain at a 35-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 KRO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $7.01 | N/A |
KRO 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.
KRO cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on KRO. 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 KRO
Cash-secured puts on KRO earn premium while a trader waits to acquire KRO stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning KRO.
KRO thesis for this cash-secured put
The market-implied 1-standard-deviation range for KRO extends from approximately $6.00 on the downside to $8.76 on the upside. A KRO cash-secured put lets a trader earn premium while waiting to acquire KRO 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 KRO IV rank near 25.94% 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 KRO at 65.00%. As a Basic Materials name, KRO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KRO-specific events.
KRO 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. KRO positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KRO alongside the broader basket even when KRO-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on KRO carry tail risk when realized volatility exceeds the implied move; review historical KRO earnings reactions and macro stress periods before sizing. Always rebuild the position from current KRO chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on KRO?
- A cash-secured put on KRO is the cash-secured put strategy applied to KRO (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 KRO stock trading near $7.38, the strikes shown on this page are snapped to the nearest listed KRO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KRO 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 KRO cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 65.00%), 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 KRO cash-secured put?
- The breakeven for the KRO 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 KRO market-implied 1-standard-deviation expected move is approximately 18.63%; 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 KRO?
- Cash-secured puts on KRO earn premium while a trader waits to acquire KRO stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning KRO.
- How does current KRO implied volatility affect this cash-secured put?
- KRO ATM IV is at 65.00% with IV rank near 25.94%, 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.