NEE Cash-Secured Put Strategy
NEE (NextEra Energy, Inc.), in the Utilities sector, (Regulated Electric industry), listed on NYSE.
NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear, coal, and natural gas facilities. It also develops, constructs, and operates long-term contracted assets that consists of clean energy solutions, such as renewable generation facilities, battery storage projects, and electric transmission facilities; sells energy commodities; and owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets. As of December 31, 2021, the company had approximately 28,564 megawatts of net generating capacity; approximately 77,000 circuit miles of transmission and distribution lines; and 696 substations. It serves approximately 11 million people through approximately 5.7 million customer accounts in the east and lower west coasts of Florida. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010.
NEE (NextEra Energy, Inc.) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $197.79B, a trailing P/E of 24.21, a beta of 0.72 versus the broader market, a 52-week range of 63.88-98.75, average daily share volume of 9.4M, a public-listing history dating back to 2014, approximately 17K full-time employees. These structural characteristics shape how NEE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.72 places NEE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NEE 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 NEE?
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 NEE snapshot
As of May 15, 2026, spot at $93.25, ATM IV 24.82%, IV rank 32.33%, expected move 7.11%. The cash-secured put on NEE 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 28-day expiry.
Why this cash-secured put structure on NEE specifically: NEE IV at 24.82% is mid-range versus its 1-year history, so the credit collected on a NEE cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 7.11% (roughly $6.63 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NEE expiries trade a higher absolute premium for lower per-day decay. Position sizing on NEE should anchor to the underlying notional of $93.25 per share and to the trader's directional view on NEE stock.
NEE cash-secured put setup
The NEE 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 NEE near $93.25, the first option leg uses a $89.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NEE chain at a 28-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 NEE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $89.00 | $1.04 |
NEE cash-secured put risk and reward
- Net Premium / Debit
- +$104.00
- Max Profit (per contract)
- $104.00
- Max Loss (per contract)
- -$8,795.00
- Breakeven(s)
- $87.96
- Risk / Reward Ratio
- 0.012
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
NEE cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on NEE. 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% | -$8,795.00 |
| $20.63 | -77.9% | -$6,733.30 |
| $41.24 | -55.8% | -$4,671.60 |
| $61.86 | -33.7% | -$2,609.90 |
| $82.48 | -11.6% | -$548.21 |
| $103.09 | +10.6% | +$104.00 |
| $123.71 | +32.7% | +$104.00 |
| $144.33 | +54.8% | +$104.00 |
| $164.95 | +76.9% | +$104.00 |
| $185.56 | +99.0% | +$104.00 |
When traders use cash-secured put on NEE
Cash-secured puts on NEE earn premium while a trader waits to acquire NEE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NEE.
NEE thesis for this cash-secured put
The market-implied 1-standard-deviation range for NEE extends from approximately $86.62 on the downside to $99.88 on the upside. A NEE cash-secured put lets a trader earn premium while waiting to acquire NEE 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 NEE IV rank near 32.33% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on NEE should anchor more to the directional view and the expected-move geometry. As a Utilities name, NEE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NEE-specific events.
NEE 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. NEE positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NEE alongside the broader basket even when NEE-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on NEE carry tail risk when realized volatility exceeds the implied move; review historical NEE earnings reactions and macro stress periods before sizing. Always rebuild the position from current NEE chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on NEE?
- A cash-secured put on NEE is the cash-secured put strategy applied to NEE (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 NEE stock trading near $93.25, the strikes shown on this page are snapped to the nearest listed NEE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NEE 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 NEE cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 24.82%), the computed maximum profit is $104.00 per contract and the computed maximum loss is -$8,795.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NEE cash-secured put?
- The breakeven for the NEE cash-secured put priced on this page is roughly $87.96 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 NEE market-implied 1-standard-deviation expected move is approximately 7.11%; 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 NEE?
- Cash-secured puts on NEE earn premium while a trader waits to acquire NEE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NEE.
- How does current NEE implied volatility affect this cash-secured put?
- NEE ATM IV is at 24.82% with IV rank near 32.33%, 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.