NOVT Cash-Secured Put Strategy
NOVT (Novanta Inc.), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NASDAQ.
Operating globally, Novanta Inc. and its affiliated companies specialize in the development, production, and distribution of advanced photonics, vision, and precision motion components and sub-assemblies. These highly engineered solutions are supplied to Original Equipment Manufacturers (OEMs) across the medical and industrial sectors. Within its Photonics division, Novanta provides a suite of laser-driven technologies. These encompass systems for laser scanning, beam manipulation, and various laser types such as CO2, solid-state, ultrafast, and optical light engines. Their applications span critical areas like industrial manufacturing, precision measurement (metrology), advanced imaging in healthcare and biological research, DNA sequencing, and specialized medical laser treatments. The Vision segment delivers an array of medical-grade innovations.
NOVT (Novanta Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $5.95B, a trailing P/E of 110.91, a beta of 1.68 versus the broader market, a 52-week range of 98.27-176.38, average daily share volume of 491K, a public-listing history dating back to 1999, approximately 3K full-time employees. These structural characteristics shape how NOVT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.68 indicates NOVT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 110.91 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 NOVT?
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.
NOVT snapshot
As of August 14, 2026, spot at $166.16, ATM IV 48.10%, IV rank 33.20%, expected move 13.79%. The cash-secured put on NOVT below is built from the August 14, 2026 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 NOVT specifically: NOVT IV at 48.10% is mid-range versus its 1-year history, so the credit collected on a NOVT cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 13.79% (roughly $22.91 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 NOVT expiries trade a higher absolute premium for lower per-day decay. Position sizing on NOVT should anchor to the underlying notional of $166.16 per share and to the trader's directional view on NOVT stock.
NOVT cash-secured put setup
The NOVT cash-secured put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With NOVT at $166.16 on that close, the first option leg uses a $160.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NOVT 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 NOVT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $160.00 | $6.45 |
NOVT cash-secured put risk and reward
- Net Premium / Debit
- +$645.00
- Max Profit (per contract)
- $645.00
- Max Loss (per contract)
- -$15,354.00
- Breakeven(s)
- $153.55
- Risk / Reward Ratio
- 0.042
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
NOVT cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on NOVT. 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% | -$15,354.00 |
| $36.75 | -77.9% | -$11,680.22 |
| $73.49 | -55.8% | -$8,006.44 |
| $110.22 | -33.7% | -$4,332.66 |
| $146.96 | -11.6% | -$658.88 |
| $183.70 | +10.6% | +$645.00 |
| $220.44 | +32.7% | +$645.00 |
| $257.17 | +54.8% | +$645.00 |
| $293.91 | +76.9% | +$645.00 |
| $330.65 | +99.0% | +$645.00 |
When traders use cash-secured put on NOVT
Cash-secured puts on NOVT earn premium while a trader waits to acquire NOVT stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NOVT.
NOVT thesis for this cash-secured put
The market-implied 1-standard-deviation range for NOVT extends from approximately $143.25 on the downside to $189.07 on the upside. A NOVT cash-secured put lets a trader earn premium while waiting to acquire NOVT 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 NOVT IV rank near 33.20% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on NOVT should anchor more to the directional view and the expected-move geometry. As a Technology name, NOVT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NOVT-specific events.
NOVT 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. NOVT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NOVT alongside the broader basket even when NOVT-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on NOVT carry tail risk when realized volatility exceeds the implied move; review historical NOVT earnings reactions and macro stress periods before sizing. Always rebuild the position from current NOVT chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on NOVT?
- A cash-secured put on NOVT is the cash-secured put strategy applied to NOVT (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 NOVT stock at $166.16 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed NOVT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are NOVT 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 NOVT cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 48.10%), the computed maximum profit is $645.00 per contract and the computed maximum loss is -$15,354.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NOVT cash-secured put?
- The breakeven for the NOVT cash-secured put priced on this page is roughly $153.55 at expiration, derived from the August 14, 2026 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 NOVT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.79%; 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 NOVT?
- Cash-secured puts on NOVT earn premium while a trader waits to acquire NOVT stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NOVT.
- How does current NOVT implied volatility affect this cash-secured put?
- NOVT ATM IV is at 48.10% with IV rank near 33.20%, 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.