NDSN Cash-Secured Put Strategy
NDSN (Nordson Corporation), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.
Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. It operates through two segments, Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS). The IPS segment provides dispensing, coating, and laminating systems for adhesives, lotions, liquids, and fibers to disposable products and roll goods; automated adhesive dispensing systems used in packaged goods industries; components and systems used in the thermoplastic melt stream; and product assembly systems for use in paper and paperboard converting applications, and manufacturing roll goods, as well as for the assembly of plastic, metal, and wood products. It also offers automated and manual dispensing products and systems to apply adhesive and sealant materials; dispensing and curing systems to coat and cure containers; systems to apply liquid paints and coatings to consumer and industrial products; and systems to apply powder paints and coatings to metal, plastic, and wood products, as well as ultraviolet equipment for use in curing and drying operations for specialty coatings, semiconductor materials, and paints. The ATS segment provides automated dispensing systems for the attachment, protection, and coating of fluids, as well as related gas plasma treatment systems for cleaning and conditioning surfaces; precision manual and semi-automated dispensers, minimally invasive interventional delivery devices, plastic molded syringes, cartridges, tips, fluid connection components, tubing, balloons, and catheters; and bond testing and automated optical, acoustic microscopy, and x-ray inspection systems for use in semiconductor and printed circuit board industries. The company markets its products through direct sales force, as well as distributors and sales representatives.
NDSN (Nordson Corporation) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $15.56B, a trailing P/E of 29.74, a beta of 0.99 versus the broader market, a 52-week range of 191.99-305.28, average daily share volume of 358K, a public-listing history dating back to 1980, approximately 8K full-time employees. These structural characteristics shape how NDSN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.99 places NDSN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NDSN 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 NDSN?
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 NDSN snapshot
As of May 15, 2026, spot at $274.59, ATM IV 31.70%, IV rank 58.99%, expected move 9.09%. The cash-secured put on NDSN 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 NDSN specifically: NDSN IV at 31.70% is mid-range versus its 1-year history, so the credit collected on a NDSN cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 9.09% (roughly $24.96 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 NDSN expiries trade a higher absolute premium for lower per-day decay. Position sizing on NDSN should anchor to the underlying notional of $274.59 per share and to the trader's directional view on NDSN stock.
NDSN cash-secured put setup
The NDSN 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 NDSN near $274.59, the first option leg uses a $260.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NDSN 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 NDSN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $260.00 | $5.20 |
NDSN cash-secured put risk and reward
- Net Premium / Debit
- +$520.00
- Max Profit (per contract)
- $520.00
- Max Loss (per contract)
- -$25,479.00
- Breakeven(s)
- $254.80
- Risk / Reward Ratio
- 0.020
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
NDSN cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on NDSN. 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% | -$25,479.00 |
| $60.72 | -77.9% | -$19,407.77 |
| $121.43 | -55.8% | -$13,336.55 |
| $182.15 | -33.7% | -$7,265.32 |
| $242.86 | -11.6% | -$1,194.10 |
| $303.57 | +10.6% | +$520.00 |
| $364.28 | +32.7% | +$520.00 |
| $425.00 | +54.8% | +$520.00 |
| $485.71 | +76.9% | +$520.00 |
| $546.42 | +99.0% | +$520.00 |
When traders use cash-secured put on NDSN
Cash-secured puts on NDSN earn premium while a trader waits to acquire NDSN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NDSN.
NDSN thesis for this cash-secured put
The market-implied 1-standard-deviation range for NDSN extends from approximately $249.63 on the downside to $299.55 on the upside. A NDSN cash-secured put lets a trader earn premium while waiting to acquire NDSN 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 NDSN IV rank near 58.99% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on NDSN should anchor more to the directional view and the expected-move geometry. As a Industrials name, NDSN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NDSN-specific events.
NDSN 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. NDSN positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NDSN alongside the broader basket even when NDSN-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on NDSN carry tail risk when realized volatility exceeds the implied move; review historical NDSN earnings reactions and macro stress periods before sizing. Always rebuild the position from current NDSN chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on NDSN?
- A cash-secured put on NDSN is the cash-secured put strategy applied to NDSN (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 NDSN stock trading near $274.59, the strikes shown on this page are snapped to the nearest listed NDSN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NDSN 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 NDSN cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 31.70%), the computed maximum profit is $520.00 per contract and the computed maximum loss is -$25,479.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NDSN cash-secured put?
- The breakeven for the NDSN cash-secured put priced on this page is roughly $254.80 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 NDSN market-implied 1-standard-deviation expected move is approximately 9.09%; 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 NDSN?
- Cash-secured puts on NDSN earn premium while a trader waits to acquire NDSN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NDSN.
- How does current NDSN implied volatility affect this cash-secured put?
- NDSN ATM IV is at 31.70% with IV rank near 58.99%, 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.