LEA Cash-Secured Put Strategy
LEA (Lear Corporation), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NYSE.
Lear Corporation, established in 1917 and headquartered in Southfield, Michigan, stands as a premier global supplier to the automotive industry. The company specializes in the conceptualization, development, engineering, manufacturing, and assembly of complete automotive seating solutions and sophisticated electrical distribution systems, along with related components. These critical products are supplied to original equipment manufacturers (OEMs) across North America, Europe, Africa, Asia, and South America. Its Seating segment delivers a comprehensive range of products, including full seat systems, critical seat subsystems, various key components, trim covers, mechanisms, foam components, and headrests. They also provide surface materials, such as premium leather and fabric, for a diverse array of vehicles, from passenger cars and compact vehicles to light trucks, pick-up trucks, and sport utility vehicles. The E-Systems segment focuses on advanced electrical distribution and connection technologies.
LEA (Lear Corporation) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $6.26B, a trailing P/E of 11.51, a beta of 1.28 versus the broader market, a 52-week range of 96.04-150.33, average daily share volume of 634K, a public-listing history dating back to 2009, approximately 164K 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 1.28 places LEA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.51 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. 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.
LEA snapshot
As of August 14, 2026, spot at $124.81, ATM IV 30.40%, IV rank 1.41%, expected move 8.72%. The cash-secured put on LEA below is built from the August 14, 2026 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 LEA specifically: LEA IV at 30.40% is on the cheap side of its 1-year range, which means a premium-selling LEA cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.72% (roughly $10.88 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 LEA expiries trade a higher absolute premium for lower per-day decay. Position sizing on LEA should anchor to the underlying notional of $124.81 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 August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With LEA at $124.81 on that close, the first option leg uses a $120.00 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 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 LEA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $120.00 | $3.70 |
LEA cash-secured put risk and reward
- Net Premium / Debit
- +$370.00
- Max Profit (per contract)
- $370.00
- Max Loss (per contract)
- -$11,629.00
- Breakeven(s)
- $116.30
- Risk / Reward Ratio
- 0.032
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% | -$11,629.00 |
| $27.61 | -77.9% | -$8,869.49 |
| $55.20 | -55.8% | -$6,109.98 |
| $82.80 | -33.7% | -$3,350.48 |
| $110.39 | -11.6% | -$590.97 |
| $137.99 | +10.6% | +$370.00 |
| $165.58 | +32.7% | +$370.00 |
| $193.18 | +54.8% | +$370.00 |
| $220.77 | +76.9% | +$370.00 |
| $248.37 | +99.0% | +$370.00 |
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 $113.93 on the downside to $135.69 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 1.41% 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 LEA at 30.40%. 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 at $124.81 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed LEA chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.40%), the computed maximum profit is $370.00 per contract and the computed maximum loss is -$11,629.00 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 $116.30 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The LEA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.72%; 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 30.40% with IV rank near 1.41%, 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.