NPO Cash-Secured Put Strategy
NPO (EnPro Industries, Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.
EnPro Industries, Inc. is a global enterprise focused on the development, manufacturing, sales, and support of advanced industrial components. Its operations span the United States, Europe, and numerous other international regions. The company's business activities are structured into three primary divisions: Sealing Technologies, Advanced Surface Technologies, and Engineered Materials. The Sealing Technologies segment delivers a wide array of sealing solutions. These include hygienic seals, tubing, and complete assemblies for single-use applications; various gaskets fabricated from metallic, non-metallic, or composite materials; compression packing; hydraulic parts; expansion joints; and products for wall penetration. It also supplies an extensive selection of mechanical seals, such as dynamic, flange, resilient metal, elastomeric, and custom-designed types.
NPO (EnPro Industries, Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $6.47B, a trailing P/E of 146.53, a beta of 1.55 versus the broader market, a 52-week range of 202-390.42, average daily share volume of 220K, a public-listing history dating back to 2002, approximately 4K full-time employees. These structural characteristics shape how NPO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.55 indicates NPO 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 146.53 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. NPO 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 NPO?
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.
NPO snapshot
As of September 29, 2026, spot at $306.54, ATM IV 38.50%, IV rank 25.05%, expected move 11.04%. The cash-secured put on NPO below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.
Why this cash-secured put structure on NPO specifically: NPO IV at 38.50% is on the cheap side of its 1-year range, which means a premium-selling NPO cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 11.04% (roughly $33.83 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NPO expiries trade a higher absolute premium for lower per-day decay. Position sizing on NPO should anchor to the underlying notional of $306.54 per share and to the trader's directional view on NPO stock.
NPO cash-secured put setup
The NPO cash-secured put below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With NPO at $306.54 on that close, the first option leg uses a $290.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NPO chain at a 17-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 NPO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $290.00 | $3.45 |
NPO cash-secured put risk and reward
- Net Premium / Debit
- +$345.00
- Max Profit (per contract)
- $345.00
- Max Loss (per contract)
- -$28,654.00
- Breakeven(s)
- $286.55
- 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.
NPO cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on NPO. 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% | -$28,654.00 |
| $67.79 | -77.9% | -$21,876.34 |
| $135.56 | -55.8% | -$15,098.68 |
| $203.34 | -33.7% | -$8,321.03 |
| $271.12 | -11.6% | -$1,543.37 |
| $338.89 | +10.6% | +$345.00 |
| $406.67 | +32.7% | +$345.00 |
| $474.45 | +54.8% | +$345.00 |
| $542.22 | +76.9% | +$345.00 |
| $610.00 | +99.0% | +$345.00 |
When traders use cash-secured put on NPO
Cash-secured puts on NPO earn premium while a trader waits to acquire NPO stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NPO.
NPO thesis for this cash-secured put
The market-implied 1-standard-deviation range for NPO extends from approximately $272.71 on the downside to $340.37 on the upside. A NPO cash-secured put lets a trader earn premium while waiting to acquire NPO 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 NPO IV rank near 25.05% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on NPO at 38.50%. As a Industrials name, NPO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NPO-specific events.
NPO 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. NPO positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NPO alongside the broader basket even when NPO-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on NPO carry tail risk when realized volatility exceeds the implied move; review historical NPO earnings reactions and macro stress periods before sizing. Always rebuild the position from current NPO chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on NPO?
- A cash-secured put on NPO is the cash-secured put strategy applied to NPO (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 NPO stock at $306.54 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed NPO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are NPO 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 NPO cash-secured put priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 38.50%), the computed maximum profit is $345.00 per contract and the computed maximum loss is -$28,654.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NPO cash-secured put?
- The breakeven for the NPO cash-secured put priced on this page is roughly $286.55 at expiration, derived from the September 29, 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 NPO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.04%; 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 NPO?
- Cash-secured puts on NPO earn premium while a trader waits to acquire NPO stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NPO.
- How does current NPO implied volatility affect this cash-secured put?
- NPO ATM IV is at 38.50% with IV rank near 25.05%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.