NN Cash-Secured Put Strategy
NN (NextNav Inc.), in the Communication Services sector, (Internet Content & Information industry), listed on NASDAQ.
NextNav Inc. provides next generation global positioning system (GPS) and 3D geolocation services. The company delivers next generation positioning, navigation, and timing solutions through its network-based Pinnacle and TerraPoiNT solutions. Its Pinnacle 3D geolocation service is commercially available in approximately 4,400 cities and towns in the United States; and its TerraPoiNT terrestrial-based encrypted network has deployments in 51 total markets nationally. The company sells its solutions directly to customers or through partners. The company was founded in 2007 and is headquartered in McLean, Virginia.
NN (NextNav Inc.) trades in the Communication Services sector, specifically Internet Content & Information, with a market capitalization of approximately $2.86B, a beta of 1.03 versus the broader market, a 52-week range of 10.84-24.188, average daily share volume of 2.1M, a public-listing history dating back to 2020, approximately 96 full-time employees. These structural characteristics shape how NN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.03 places NN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a cash-secured put on NN?
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 NN snapshot
As of May 15, 2026, spot at $21.34, ATM IV 86.22%, IV rank 41.71%, expected move 24.72%. The cash-secured put on NN 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 NN specifically: NN IV at 86.22% is mid-range versus its 1-year history, so the credit collected on a NN cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 24.72% (roughly $5.27 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 NN expiries trade a higher absolute premium for lower per-day decay. Position sizing on NN should anchor to the underlying notional of $21.34 per share and to the trader's directional view on NN stock.
NN cash-secured put setup
The NN 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 NN near $21.34, the first option leg uses a $20.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NN 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 NN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $20.50 | $1.70 |
NN cash-secured put risk and reward
- Net Premium / Debit
- +$170.00
- Max Profit (per contract)
- $170.00
- Max Loss (per contract)
- -$1,879.00
- Breakeven(s)
- $18.80
- Risk / Reward Ratio
- 0.090
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
NN cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on NN. 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% | -$1,879.00 |
| $4.73 | -77.8% | -$1,407.27 |
| $9.44 | -55.7% | -$935.54 |
| $14.16 | -33.6% | -$463.81 |
| $18.88 | -11.5% | +$7.91 |
| $23.60 | +10.6% | +$170.00 |
| $28.31 | +32.7% | +$170.00 |
| $33.03 | +54.8% | +$170.00 |
| $37.75 | +76.9% | +$170.00 |
| $42.47 | +99.0% | +$170.00 |
When traders use cash-secured put on NN
Cash-secured puts on NN earn premium while a trader waits to acquire NN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NN.
NN thesis for this cash-secured put
The market-implied 1-standard-deviation range for NN extends from approximately $16.07 on the downside to $26.61 on the upside. A NN cash-secured put lets a trader earn premium while waiting to acquire NN 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 NN IV rank near 41.71% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on NN should anchor more to the directional view and the expected-move geometry. As a Communication Services name, NN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NN-specific events.
NN 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. NN positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NN alongside the broader basket even when NN-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on NN carry tail risk when realized volatility exceeds the implied move; review historical NN earnings reactions and macro stress periods before sizing. Always rebuild the position from current NN chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on NN?
- A cash-secured put on NN is the cash-secured put strategy applied to NN (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 NN stock trading near $21.34, the strikes shown on this page are snapped to the nearest listed NN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NN 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 NN cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 86.22%), the computed maximum profit is $170.00 per contract and the computed maximum loss is -$1,879.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NN cash-secured put?
- The breakeven for the NN cash-secured put priced on this page is roughly $18.80 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 NN market-implied 1-standard-deviation expected move is approximately 24.72%; 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 NN?
- Cash-secured puts on NN earn premium while a trader waits to acquire NN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NN.
- How does current NN implied volatility affect this cash-secured put?
- NN ATM IV is at 86.22% with IV rank near 41.71%, 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.