METC Cash-Secured Put Strategy
METC (Ramaco Resources, Inc.), in the Energy sector, (Coal industry), listed on NASDAQ.
Ramaco Resources, Inc. primarily focuses on the mining and commercialization of metallurgical coal. The company possesses a substantial portfolio of development properties, including the Elk Creek project in southern West Virginia, which spans approximately 20,200 acres of controlled mineral and incorporates 16 distinct coal seams. Additionally, its holdings comprise the Berwind property, an approximately 41,300-acre site of controlled mineral with Squire Jim seam deposits, located on the border between West Virginia and Virginia. Further assets include the Knox Creek property, a vast 62,100-acre controlled mineral tract in Virginia, and the RAM Mine property, encompassing around 1,570 controlled acres in southwestern Pennsylvania. Ramaco provides its products to blast furnace steel manufacturers and coke production facilities throughout the United States, as well as to international consumers of metallurgical coal. The enterprise was established in 2015 and has its corporate headquarters in Lexington, Kentucky.
METC (Ramaco Resources, Inc.) trades in the Energy sector, specifically Coal, with a market capitalization of approximately $675.8M, a beta of 1.23 versus the broader market, a 52-week range of 9.75-57.8, average daily share volume of 1.6M, a public-listing history dating back to 2017, approximately 984 full-time employees. These structural characteristics shape how METC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.23 places METC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. METC 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 METC?
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 METC snapshot
As of June 30, 2026, spot at $13.22, ATM IV 93.70%, IV rank 16.39%, expected move 26.86%. The cash-secured put on METC 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 17-day expiry.
Why this cash-secured put structure on METC specifically: METC IV at 93.70% is on the cheap side of its 1-year range, which means a premium-selling METC cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 26.86% (roughly $3.55 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated METC expiries trade a higher absolute premium for lower per-day decay. Position sizing on METC should anchor to the underlying notional of $13.22 per share and to the trader's directional view on METC stock.
METC cash-secured put setup
The METC 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 METC near $13.22, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed METC chain at a 17-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 METC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $13.00 | $0.95 |
METC cash-secured put risk and reward
- Net Premium / Debit
- +$95.00
- Max Profit (per contract)
- $95.00
- Max Loss (per contract)
- -$1,204.00
- Breakeven(s)
- $12.05
- Risk / Reward Ratio
- 0.079
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
METC cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on METC. 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 | -99.9% | -$1,204.00 |
| $2.93 | -77.8% | -$911.81 |
| $5.85 | -55.7% | -$619.62 |
| $8.78 | -33.6% | -$327.43 |
| $11.70 | -11.5% | -$35.24 |
| $14.62 | +10.6% | +$95.00 |
| $17.54 | +32.7% | +$95.00 |
| $20.46 | +54.8% | +$95.00 |
| $23.39 | +76.9% | +$95.00 |
| $26.31 | +99.0% | +$95.00 |
When traders use cash-secured put on METC
Cash-secured puts on METC earn premium while a trader waits to acquire METC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning METC.
METC thesis for this cash-secured put
The market-implied 1-standard-deviation range for METC extends from approximately $9.67 on the downside to $16.77 on the upside. A METC cash-secured put lets a trader earn premium while waiting to acquire METC 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 METC IV rank near 16.39% 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 METC at 93.70%. As a Energy name, METC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to METC-specific events.
METC 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. METC positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move METC alongside the broader basket even when METC-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on METC carry tail risk when realized volatility exceeds the implied move; review historical METC earnings reactions and macro stress periods before sizing. Always rebuild the position from current METC chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on METC?
- A cash-secured put on METC is the cash-secured put strategy applied to METC (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 METC stock trading near $13.22, the strikes shown on this page are snapped to the nearest listed METC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are METC 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 METC cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 93.70%), the computed maximum profit is $95.00 per contract and the computed maximum loss is -$1,204.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a METC cash-secured put?
- The breakeven for the METC cash-secured put priced on this page is roughly $12.05 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 METC market-implied 1-standard-deviation expected move is approximately 26.86%; 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 METC?
- Cash-secured puts on METC earn premium while a trader waits to acquire METC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning METC.
- How does current METC implied volatility affect this cash-secured put?
- METC ATM IV is at 93.70% with IV rank near 16.39%, 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.