OGS Cash-Secured Put Strategy
OGS (ONE Gas, Inc.), in the Utilities sector, (Regulated Gas industry), listed on NYSE.
ONE Gas, Inc., along with its affiliated companies, functions as a regulated natural gas utility across the United States. Its operations are structured into three distinct divisions: Oklahoma Natural Gas, Kansas Gas Service, and Texas Gas Service. These divisions collectively deliver natural gas distribution services to approximately 2.2 million customers spanning three states. Its diverse clientele includes residential households, commercial enterprises, and transportation sector users. Pertaining to its infrastructure, as of December 31, 2021, the company maintained an extensive network comprising roughly 41,600 miles of distribution mains and 2,400 miles of transmission pipelines. Furthermore, it possessed a substantial natural gas storage capacity of 51.4 billion cubic feet.
OGS (ONE Gas, Inc.) trades in the Utilities sector, specifically Regulated Gas, with a market capitalization of approximately $5.00B, a trailing P/E of 18.32, a beta of 0.65 versus the broader market, a 52-week range of 70.97-90.78, average daily share volume of 619K, a public-listing history dating back to 2014, approximately 4K full-time employees. These structural characteristics shape how OGS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.65 indicates OGS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. OGS 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 OGS?
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 OGS snapshot
As of June 29, 2026, spot at $78.38, ATM IV 25.20%, IV rank 3.49%, expected move 7.22%. The cash-secured put on OGS 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 18-day expiry.
Why this cash-secured put structure on OGS specifically: OGS IV at 25.20% is on the cheap side of its 1-year range, which means a premium-selling OGS cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.22% (roughly $5.66 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OGS expiries trade a higher absolute premium for lower per-day decay. Position sizing on OGS should anchor to the underlying notional of $78.38 per share and to the trader's directional view on OGS stock.
OGS cash-secured put setup
The OGS 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 OGS near $78.38, the first option leg uses a $74.46 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OGS chain at a 18-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 OGS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $74.46 | N/A |
OGS 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.
OGS cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on OGS. 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 OGS
Cash-secured puts on OGS earn premium while a trader waits to acquire OGS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning OGS.
OGS thesis for this cash-secured put
The market-implied 1-standard-deviation range for OGS extends from approximately $72.72 on the downside to $84.04 on the upside. A OGS cash-secured put lets a trader earn premium while waiting to acquire OGS 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 OGS IV rank near 3.49% 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 OGS at 25.20%. As a Utilities name, OGS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OGS-specific events.
OGS 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. OGS positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OGS alongside the broader basket even when OGS-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on OGS carry tail risk when realized volatility exceeds the implied move; review historical OGS earnings reactions and macro stress periods before sizing. Always rebuild the position from current OGS chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on OGS?
- A cash-secured put on OGS is the cash-secured put strategy applied to OGS (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 OGS stock trading near $78.38, the strikes shown on this page are snapped to the nearest listed OGS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OGS 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 OGS cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 25.20%), 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 OGS cash-secured put?
- The breakeven for the OGS cash-secured put priced on this page is no defined breakeven on the modeled curve 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 OGS market-implied 1-standard-deviation expected move is approximately 7.22%; 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 OGS?
- Cash-secured puts on OGS earn premium while a trader waits to acquire OGS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning OGS.
- How does current OGS implied volatility affect this cash-secured put?
- OGS ATM IV is at 25.20% with IV rank near 3.49%, 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.