LCII Cash-Secured Put Strategy
LCII (LCI Industries), in the Consumer Cyclical sector, (Auto - Recreational Vehicles industry), listed on NYSE.
LCI Industries, together with its subsidiaries, manufactures and supplies components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. It operates in two segments, Original Equipment Manufacturers (OEM) and Aftermarket. The OEM segment manufactures and distributes a range of engineered components, such as steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; towing products; truck accessories; electronic components; appliances; air conditioners; televisions and sound systems; and other accessories. This segment serves OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; boats; trains; manufactured homes; and modular housing, as well as travel trailers, fifth-wheel travel trailers, folding camping trailers, and truck campers. The Aftermarket segment supplies various components of RV and adjacent industries to retail dealers, wholesale distributors, and service centers. This segment also sells replacement glass and awnings to fulfill insurance claims; and biminis, covers, buoys, and fenders to the marine industry.
LCII (LCI Industries) trades in the Consumer Cyclical sector, specifically Auto - Recreational Vehicles, with a market capitalization of approximately $2.69B, a trailing P/E of 13.33, a beta of 1.22 versus the broader market, a 52-week range of 84.25-159.66, average daily share volume of 377K, a public-listing history dating back to 1985, approximately 12K full-time employees. These structural characteristics shape how LCII stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places LCII roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. LCII 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 LCII?
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 LCII snapshot
As of May 15, 2026, spot at $111.09, ATM IV 38.50%, IV rank 6.04%, expected move 11.04%. The cash-secured put on LCII 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 LCII specifically: LCII IV at 38.50% is on the cheap side of its 1-year range, which means a premium-selling LCII cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 11.04% (roughly $12.26 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 LCII expiries trade a higher absolute premium for lower per-day decay. Position sizing on LCII should anchor to the underlying notional of $111.09 per share and to the trader's directional view on LCII stock.
LCII cash-secured put setup
The LCII 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 LCII near $111.09, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LCII 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 LCII shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $105.00 | $2.95 |
LCII cash-secured put risk and reward
- Net Premium / Debit
- +$295.00
- Max Profit (per contract)
- $295.00
- Max Loss (per contract)
- -$10,204.00
- Breakeven(s)
- $102.05
- Risk / Reward Ratio
- 0.029
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
LCII cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on LCII. 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% | -$10,204.00 |
| $24.57 | -77.9% | -$7,747.85 |
| $49.13 | -55.8% | -$5,291.70 |
| $73.69 | -33.7% | -$2,835.55 |
| $98.26 | -11.6% | -$379.40 |
| $122.82 | +10.6% | +$295.00 |
| $147.38 | +32.7% | +$295.00 |
| $171.94 | +54.8% | +$295.00 |
| $196.50 | +76.9% | +$295.00 |
| $221.06 | +99.0% | +$295.00 |
When traders use cash-secured put on LCII
Cash-secured puts on LCII earn premium while a trader waits to acquire LCII stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LCII.
LCII thesis for this cash-secured put
The market-implied 1-standard-deviation range for LCII extends from approximately $98.83 on the downside to $123.35 on the upside. A LCII cash-secured put lets a trader earn premium while waiting to acquire LCII 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 LCII IV rank near 6.04% 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 LCII at 38.50%. As a Consumer Cyclical name, LCII options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LCII-specific events.
LCII 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. LCII positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LCII alongside the broader basket even when LCII-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on LCII carry tail risk when realized volatility exceeds the implied move; review historical LCII earnings reactions and macro stress periods before sizing. Always rebuild the position from current LCII chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on LCII?
- A cash-secured put on LCII is the cash-secured put strategy applied to LCII (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 LCII stock trading near $111.09, the strikes shown on this page are snapped to the nearest listed LCII chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LCII 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 LCII cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 38.50%), the computed maximum profit is $295.00 per contract and the computed maximum loss is -$10,204.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LCII cash-secured put?
- The breakeven for the LCII cash-secured put priced on this page is roughly $102.05 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 LCII market-implied 1-standard-deviation expected move is approximately 11.04%; 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 LCII?
- Cash-secured puts on LCII earn premium while a trader waits to acquire LCII stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LCII.
- How does current LCII implied volatility affect this cash-secured put?
- LCII ATM IV is at 38.50% with IV rank near 6.04%, 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.