LEA Cash-Secured Put Strategy
LEA (Lear Corporation), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NYSE.
Lear Corporation designs, develops, engineers, manufactures, assembles, and supplies automotive seating, and electrical distribution systems and related components for automotive original equipment manufacturers in North America, Europe, Africa, Asia, and South America. Its Seating segment offers seat systems, seat subsystems, keyseat components, seat trim covers, seat mechanisms, seat foams, and headrests, as well as surface materials, such as leather and fabric for automobiles and light trucks, compact cars, pick-up trucks, and sport utility vehicles. The company's E-Systems segment provides electrical distribution and connection systems that route electrical signals and networks; and manage electrical power within the vehicle for various powertrains. This segment's products comprise wire harnesses, terminals and connectors, engineered components, and junction boxes; electronic system products, including body domain control modules, smart and passive junction boxes, gateway and communication modules, integrated power modules, and high voltage switching and power control systems. It also offers software and connected services comprising Xevo Market, an in-vehicle commerce and service platform; and software and services for the cloud, vehicles, and mobile devices. In addition, this segment provides cybersecurity software; advanced vehicle positioning for automated and autonomous driving applications; and short-range communication and cellular protocols for vehicle connectivity.
LEA (Lear Corporation) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $6.89B, a trailing P/E of 13.29, a beta of 1.22 versus the broader market, a 52-week range of 86.14-142.84, average daily share volume of 568K, a public-listing history dating back to 2009, approximately 174K full-time employees. These structural characteristics shape how LEA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places LEA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. LEA 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 LEA?
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 LEA snapshot
As of May 15, 2026, spot at $133.50, ATM IV 34.00%, IV rank 43.05%, expected move 9.75%. The cash-secured put on LEA 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 LEA specifically: LEA IV at 34.00% is mid-range versus its 1-year history, so the credit collected on a LEA cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 9.75% (roughly $13.01 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 LEA expiries trade a higher absolute premium for lower per-day decay. Position sizing on LEA should anchor to the underlying notional of $133.50 per share and to the trader's directional view on LEA stock.
LEA cash-secured put setup
The LEA 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 LEA near $133.50, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LEA 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 LEA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $125.00 | $2.33 |
LEA cash-secured put risk and reward
- Net Premium / Debit
- +$232.50
- Max Profit (per contract)
- $232.50
- Max Loss (per contract)
- -$12,266.50
- Breakeven(s)
- $122.68
- Risk / Reward Ratio
- 0.019
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
LEA cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on LEA. 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% | -$12,266.50 |
| $29.53 | -77.9% | -$9,314.85 |
| $59.04 | -55.8% | -$6,363.20 |
| $88.56 | -33.7% | -$3,411.56 |
| $118.08 | -11.6% | -$459.91 |
| $147.59 | +10.6% | +$232.50 |
| $177.11 | +32.7% | +$232.50 |
| $206.63 | +54.8% | +$232.50 |
| $236.14 | +76.9% | +$232.50 |
| $265.66 | +99.0% | +$232.50 |
When traders use cash-secured put on LEA
Cash-secured puts on LEA earn premium while a trader waits to acquire LEA stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LEA.
LEA thesis for this cash-secured put
The market-implied 1-standard-deviation range for LEA extends from approximately $120.49 on the downside to $146.51 on the upside. A LEA cash-secured put lets a trader earn premium while waiting to acquire LEA 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 LEA IV rank near 43.05% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on LEA should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, LEA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LEA-specific events.
LEA 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. LEA positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LEA alongside the broader basket even when LEA-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on LEA carry tail risk when realized volatility exceeds the implied move; review historical LEA earnings reactions and macro stress periods before sizing. Always rebuild the position from current LEA chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on LEA?
- A cash-secured put on LEA is the cash-secured put strategy applied to LEA (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 LEA stock trading near $133.50, the strikes shown on this page are snapped to the nearest listed LEA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LEA 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 LEA cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 34.00%), the computed maximum profit is $232.50 per contract and the computed maximum loss is -$12,266.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LEA cash-secured put?
- The breakeven for the LEA cash-secured put priced on this page is roughly $122.68 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 LEA market-implied 1-standard-deviation expected move is approximately 9.75%; 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 LEA?
- Cash-secured puts on LEA earn premium while a trader waits to acquire LEA stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LEA.
- How does current LEA implied volatility affect this cash-secured put?
- LEA ATM IV is at 34.00% with IV rank near 43.05%, 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.