MPAA Cash-Secured Put Strategy
MPAA (Motorcar Parts of America, Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.
Motorcar Parts of America, Inc. manufactures, remanufactures, and distributes heavy-duty truck, industrial, marine, and agricultural application replacement parts. The company offers rotating electrical products, including alternators and starters; wheel hub assemblies and bearings; and brake-related products comprising brake calipers, brake boosters, brake rotors, brake pads, and brake master cylinders. It also offers test solutions and diagnostic equipment for electric vehicle powertrain development and manufacturing, including electric motor test systems, e-axle test systems, advanced power emulators, and charging unit test systems, as well as test systems for alternators, starters, belt starter generator, and bench-top testers, as well as turbochargers and test services for electric vehicle inverters. The company sells its products to automotive retail chain stores and warehouse distributors, as well as various automobile manufacturers for their aftermarket programs and warranty replacement programs in North America. Motorcar Parts of America, Inc. was founded in 1968 and is headquartered in Torrance, California.
MPAA (Motorcar Parts of America, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $215.0M, a trailing P/E of 111.31, a beta of 1.23 versus the broader market, a 52-week range of 9.29-18.12, average daily share volume of 102K, a public-listing history dating back to 1994, approximately 6K full-time employees. These structural characteristics shape how MPAA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.23 places MPAA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 111.31 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a cash-secured put on MPAA?
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 MPAA snapshot
As of May 15, 2026, spot at $11.04, ATM IV 92.60%, IV rank 43.91%, expected move 26.55%. The cash-secured put on MPAA 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 MPAA specifically: MPAA IV at 92.60% is mid-range versus its 1-year history, so the credit collected on a MPAA cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 26.55% (roughly $2.93 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 MPAA expiries trade a higher absolute premium for lower per-day decay. Position sizing on MPAA should anchor to the underlying notional of $11.04 per share and to the trader's directional view on MPAA stock.
MPAA cash-secured put setup
The MPAA 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 MPAA near $11.04, the first option leg uses a $10.49 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MPAA 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 MPAA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $10.49 | N/A |
MPAA 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.
MPAA cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on MPAA. 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 MPAA
Cash-secured puts on MPAA earn premium while a trader waits to acquire MPAA stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning MPAA.
MPAA thesis for this cash-secured put
The market-implied 1-standard-deviation range for MPAA extends from approximately $8.11 on the downside to $13.97 on the upside. A MPAA cash-secured put lets a trader earn premium while waiting to acquire MPAA 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 MPAA IV rank near 43.91% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on MPAA should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, MPAA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MPAA-specific events.
MPAA 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. MPAA positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MPAA alongside the broader basket even when MPAA-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on MPAA carry tail risk when realized volatility exceeds the implied move; review historical MPAA earnings reactions and macro stress periods before sizing. Always rebuild the position from current MPAA chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on MPAA?
- A cash-secured put on MPAA is the cash-secured put strategy applied to MPAA (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 MPAA stock trading near $11.04, the strikes shown on this page are snapped to the nearest listed MPAA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MPAA 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 MPAA cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 92.60%), 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 MPAA cash-secured put?
- The breakeven for the MPAA 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 MPAA market-implied 1-standard-deviation expected move is approximately 26.55%; 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 MPAA?
- Cash-secured puts on MPAA earn premium while a trader waits to acquire MPAA stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning MPAA.
- How does current MPAA implied volatility affect this cash-secured put?
- MPAA ATM IV is at 92.60% with IV rank near 43.91%, 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.