NL Cash-Secured Put Strategy
NL (NLI Holdings, Inc.), in the Industrials sector, (Security & Protection Services industry), listed on NYSE.
NL Industries, Inc., through its subsidiary CompX International Inc., is a global and domestic manufacturer specializing in diverse component products. The company provides an extensive portfolio of mechanical and electronic locking mechanisms. This range includes various cabinet locks, such as classic disc tumbler and pin tumbler designs, alongside modern electronic options like CompX eLock and StealthLock systems. These security solutions are integral to a wide array of applications, including ignition systems, mailboxes, office furniture (file and desk cabinets), tool storage, integrated inventory and access control for secure narcotics boxes, vending and cash containment systems, medical cabinetry, electronic circuit panels, general storage compartments, and gas station security. Beyond locking devices, NL Industries also supplies a broad selection of original equipment and aftermarket components, primarily for performance and ski/wakeboard boats. These offerings include stainless steel exhaust systems such as headers, pipes, and mufflers, as well as other exhaust-related parts.
NL (NLI Holdings, Inc.) trades in the Industrials sector, specifically Security & Protection Services, with a market capitalization of approximately $328.4M, a beta of 0.21 versus the broader market, a 52-week range of 5.04-8.6, average daily share volume of 53K, a public-listing history dating back to 1980, approximately 3K full-time employees. These structural characteristics shape how NL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.21 indicates NL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. NL 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 NL?
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.
NL snapshot
As of August 14, 2026, spot at $6.43, ATM IV 97.10%, IV rank 40.72%, expected move 27.84%. The cash-secured put on NL below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this cash-secured put structure on NL specifically: NL IV at 97.10% is mid-range versus its 1-year history, so the credit collected on a NL cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 27.84% (roughly $1.79 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NL expiries trade a higher absolute premium for lower per-day decay. Position sizing on NL should anchor to the underlying notional of $6.43 per share and to the trader's directional view on NL stock.
NL cash-secured put setup
The NL 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 NL at $6.43 on that close, the first option leg uses a $6.11 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NL chain at a 35-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 NL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $6.11 | N/A |
NL 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.
NL cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on NL. 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 NL
Cash-secured puts on NL earn premium while a trader waits to acquire NL stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NL.
NL thesis for this cash-secured put
The market-implied 1-standard-deviation range for NL extends from approximately $4.64 on the downside to $8.22 on the upside. A NL cash-secured put lets a trader earn premium while waiting to acquire NL 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 NL IV rank near 40.72% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on NL should anchor more to the directional view and the expected-move geometry. As a Industrials name, NL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NL-specific events.
NL 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. NL positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NL alongside the broader basket even when NL-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on NL carry tail risk when realized volatility exceeds the implied move; review historical NL earnings reactions and macro stress periods before sizing. Always rebuild the position from current NL chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on NL?
- A cash-secured put on NL is the cash-secured put strategy applied to NL (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 NL stock at $6.43 on the most recent close, the strikes shown on this page are snapped to the nearest listed NL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are NL 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 NL cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 97.10%), 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 NL cash-secured put?
- The breakeven for the NL cash-secured put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The NL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 27.84%; 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 NL?
- Cash-secured puts on NL earn premium while a trader waits to acquire NL stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NL.
- How does current NL implied volatility affect this cash-secured put?
- NL ATM IV is at 97.10% with IV rank near 40.72%, 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.