LTRX Cash-Secured Put Strategy

LTRX (Lantronix, Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.

Lantronix, Inc. provides software as a service (SaaS), engineering services, and hardware for edge computing, the Internet of Things (IoT), and remote environment management (REM) in the Americas, Europe, the Middle East, Africa, and the Asia Pacific Japan. The company's IoT products include IoT Connectivity, which provide wired and wireless connections that enhance the value and utility of modern electronic systems and equipment through secure network connectivity, power for IoT end devices through Power over Ethernet, application hosting, protocol conversion, media conversion, secure access for distributed IoT deployments, and various other functions; IoT Compute, such as application processing delivering compute to meet customer needs for data transformation, computer vision, machine learning, augmented/virtual reality, audio/video aggregation and distribution, and custom applications; and IoT Telematics, which provides power efficient products designed to support communications across interfaces and industrial protocols for vehicle, fleet, and asset tracking and management. It also offers network switches, media converters, power over ethernet, NICS and optical SFPs, system on modules, single board computers, and development kits; and services for mechanical, hardware, and software engineering for camera, audio, and artificial intelligence/machine learning development, as well as xPrintServer. In addition, the company's REM products include out-of-band management, console management, power management, and IP connected keyboard-video-mouse products that offers remote access to IT and networking infrastructure deployed in test labs, data centers, branch offices, remote sites, and server rooms. Further, its SaaS platform enables customers to deploy, monitor, manage, and automate across their global deployments through a single platform login. Lantronix, Inc. was founded in 1989 and is headquartered in Irvine, California.

LTRX (Lantronix, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $244.1M, a beta of 1.64 versus the broader market, a 52-week range of 2.12-8.24, average daily share volume of 613K, a public-listing history dating back to 2000, approximately 367 full-time employees. These structural characteristics shape how LTRX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.64 indicates LTRX 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 LTRX?

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 LTRX snapshot

As of May 15, 2026, spot at $6.28, ATM IV 80.70%, IV rank 23.34%, expected move 23.14%. The cash-secured put on LTRX 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 LTRX specifically: LTRX IV at 80.70% is on the cheap side of its 1-year range, which means a premium-selling LTRX cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 23.14% (roughly $1.45 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 LTRX expiries trade a higher absolute premium for lower per-day decay. Position sizing on LTRX should anchor to the underlying notional of $6.28 per share and to the trader's directional view on LTRX stock.

LTRX cash-secured put setup

The LTRX 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 LTRX near $6.28, the first option leg uses a $5.97 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LTRX 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 LTRX shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$5.97N/A

LTRX 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.

LTRX cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on LTRX. 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 LTRX

Cash-secured puts on LTRX earn premium while a trader waits to acquire LTRX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LTRX.

LTRX thesis for this cash-secured put

The market-implied 1-standard-deviation range for LTRX extends from approximately $4.83 on the downside to $7.73 on the upside. A LTRX cash-secured put lets a trader earn premium while waiting to acquire LTRX 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 LTRX IV rank near 23.34% 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 LTRX at 80.70%. As a Technology name, LTRX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LTRX-specific events.

LTRX 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. LTRX positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LTRX alongside the broader basket even when LTRX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on LTRX carry tail risk when realized volatility exceeds the implied move; review historical LTRX earnings reactions and macro stress periods before sizing. Always rebuild the position from current LTRX chain quotes before placing a trade.

Frequently asked questions

What is a cash-secured put on LTRX?
A cash-secured put on LTRX is the cash-secured put strategy applied to LTRX (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 LTRX stock trading near $6.28, the strikes shown on this page are snapped to the nearest listed LTRX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LTRX 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 LTRX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 80.70%), 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 LTRX cash-secured put?
The breakeven for the LTRX 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 LTRX market-implied 1-standard-deviation expected move is approximately 23.14%; 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 LTRX?
Cash-secured puts on LTRX earn premium while a trader waits to acquire LTRX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LTRX.
How does current LTRX implied volatility affect this cash-secured put?
LTRX ATM IV is at 80.70% with IV rank near 23.34%, 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.

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