NVTS Cash-Secured Put Strategy
NVTS (Navitas Semiconductor Corporation), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Navitas Semiconductor Corporation designs, develops, and sells gallium nitride (GaN) power integrated circuits in China, the United States, Taiwan, Korea, and internationally. The company was incorporated in 2013 and is based in Dublin, Ireland.
NVTS (Navitas Semiconductor Corporation) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $4.95B, a beta of 3.62 versus the broader market, a 52-week range of 1.88-23.82, average daily share volume of 27.4M, a public-listing history dating back to 2021, approximately 280 full-time employees. These structural characteristics shape how NVTS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.62 indicates NVTS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a cash-secured put on NVTS?
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 NVTS snapshot
As of May 15, 2026, spot at $21.33, ATM IV 135.65%, IV rank 49.38%, expected move 38.89%. The cash-secured put on NVTS 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 NVTS specifically: NVTS IV at 135.65% is mid-range versus its 1-year history, so the credit collected on a NVTS cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 38.89% (roughly $8.30 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 NVTS expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVTS should anchor to the underlying notional of $21.33 per share and to the trader's directional view on NVTS stock.
NVTS cash-secured put setup
The NVTS 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 NVTS near $21.33, 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 NVTS 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 NVTS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $20.50 | $2.73 |
NVTS cash-secured put risk and reward
- Net Premium / Debit
- +$272.50
- Max Profit (per contract)
- $272.50
- Max Loss (per contract)
- -$1,776.50
- Breakeven(s)
- $17.78
- Risk / Reward Ratio
- 0.153
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
NVTS cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on NVTS. 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% | -$1,776.50 |
| $4.73 | -77.8% | -$1,304.99 |
| $9.44 | -55.7% | -$833.48 |
| $14.16 | -33.6% | -$361.98 |
| $18.87 | -11.5% | +$109.53 |
| $23.59 | +10.6% | +$272.50 |
| $28.30 | +32.7% | +$272.50 |
| $33.02 | +54.8% | +$272.50 |
| $37.73 | +76.9% | +$272.50 |
| $42.45 | +99.0% | +$272.50 |
When traders use cash-secured put on NVTS
Cash-secured puts on NVTS earn premium while a trader waits to acquire NVTS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NVTS.
NVTS thesis for this cash-secured put
The market-implied 1-standard-deviation range for NVTS extends from approximately $13.03 on the downside to $29.63 on the upside. A NVTS cash-secured put lets a trader earn premium while waiting to acquire NVTS 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 NVTS IV rank near 49.38% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on NVTS should anchor more to the directional view and the expected-move geometry. As a Technology name, NVTS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVTS-specific events.
NVTS 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. NVTS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NVTS alongside the broader basket even when NVTS-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on NVTS carry tail risk when realized volatility exceeds the implied move; review historical NVTS earnings reactions and macro stress periods before sizing. Always rebuild the position from current NVTS chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on NVTS?
- A cash-secured put on NVTS is the cash-secured put strategy applied to NVTS (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 NVTS stock trading near $21.33, the strikes shown on this page are snapped to the nearest listed NVTS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NVTS 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 NVTS cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 135.65%), the computed maximum profit is $272.50 per contract and the computed maximum loss is -$1,776.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NVTS cash-secured put?
- The breakeven for the NVTS cash-secured put priced on this page is roughly $17.78 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 NVTS market-implied 1-standard-deviation expected move is approximately 38.89%; 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 NVTS?
- Cash-secured puts on NVTS earn premium while a trader waits to acquire NVTS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NVTS.
- How does current NVTS implied volatility affect this cash-secured put?
- NVTS ATM IV is at 135.65% with IV rank near 49.38%, 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.