LMB Cash-Secured Put Strategy
LMB (Limbach Holdings, Inc.), in the Industrials sector, (Engineering & Construction industry), listed on NASDAQ.
Limbach Holdings, Inc. operates as an integrated building systems solutions company in the United States. It operates in two segments, General Contractor Relationships and Owner Direct Relationships. The company engages in the design, prefabrication, installation, management, and maintenance of mechanical, electrical, plumbing, and control systems, as well as heating, ventilation, air-conditioning (HVAC) system. Its facility services comprise mechanical construction, HVAC service and maintenance, energy audits and retrofits, engineering and design build, constructability evaluation, equipment and materials selection, offsite/prefabrication construction, and sustainable building solutions and practices. The company serves research, acute care, and inpatient hospitals; public and private colleges, universities, research centers and K-12 facilities; sports arenas; entertainment facilities, and amusement rides; passenger terminals and maintenance facilities for rail and airports; government facilities comprising federal, state, and local agencies; hotels and resorts; office building and other commercial structures; data centers; and industrial manufacturing facilities. The company was founded in 1901 and is headquartered in Pittsburgh, Pennsylvania.
LMB (Limbach Holdings, Inc.) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $855.2M, a trailing P/E of 25.39, a beta of 1.53 versus the broader market, a 52-week range of 65.08-154.05, average daily share volume of 241K, a public-listing history dating back to 2014, approximately 1K full-time employees. These structural characteristics shape how LMB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.53 indicates LMB has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a cash-secured put on LMB?
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 LMB snapshot
As of May 14, 2026, spot at $74.47, ATM IV 66.20%, IV rank 40.95%, expected move 18.98%. The cash-secured put on LMB 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 LMB specifically: LMB IV at 66.20% is mid-range versus its 1-year history, so the credit collected on a LMB cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 18.98% (roughly $14.13 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 LMB expiries trade a higher absolute premium for lower per-day decay. Position sizing on LMB should anchor to the underlying notional of $74.47 per share and to the trader's directional view on LMB stock.
LMB cash-secured put setup
The LMB 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 LMB near $74.47, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LMB 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 LMB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $70.00 | $4.50 |
LMB cash-secured put risk and reward
- Net Premium / Debit
- +$450.00
- Max Profit (per contract)
- $450.00
- Max Loss (per contract)
- -$6,549.00
- Breakeven(s)
- $65.50
- Risk / Reward Ratio
- 0.069
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
LMB cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on LMB. 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% | -$6,549.00 |
| $16.47 | -77.9% | -$4,902.54 |
| $32.94 | -55.8% | -$3,256.08 |
| $49.40 | -33.7% | -$1,609.61 |
| $65.87 | -11.6% | +$36.85 |
| $82.33 | +10.6% | +$450.00 |
| $98.80 | +32.7% | +$450.00 |
| $115.26 | +54.8% | +$450.00 |
| $131.73 | +76.9% | +$450.00 |
| $148.19 | +99.0% | +$450.00 |
When traders use cash-secured put on LMB
Cash-secured puts on LMB earn premium while a trader waits to acquire LMB stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LMB.
LMB thesis for this cash-secured put
The market-implied 1-standard-deviation range for LMB extends from approximately $60.34 on the downside to $88.60 on the upside. A LMB cash-secured put lets a trader earn premium while waiting to acquire LMB 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 LMB IV rank near 40.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on LMB should anchor more to the directional view and the expected-move geometry. As a Industrials name, LMB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LMB-specific events.
LMB 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. LMB positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LMB alongside the broader basket even when LMB-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on LMB carry tail risk when realized volatility exceeds the implied move; review historical LMB earnings reactions and macro stress periods before sizing. Always rebuild the position from current LMB chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on LMB?
- A cash-secured put on LMB is the cash-secured put strategy applied to LMB (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 LMB stock trading near $74.47, the strikes shown on this page are snapped to the nearest listed LMB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LMB 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 LMB cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 66.20%), the computed maximum profit is $450.00 per contract and the computed maximum loss is -$6,549.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LMB cash-secured put?
- The breakeven for the LMB cash-secured put priced on this page is roughly $65.50 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 LMB market-implied 1-standard-deviation expected move is approximately 18.98%; 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 LMB?
- Cash-secured puts on LMB earn premium while a trader waits to acquire LMB stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LMB.
- How does current LMB implied volatility affect this cash-secured put?
- LMB ATM IV is at 66.20% with IV rank near 40.95%, 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.