OLLI Cash-Secured Put Strategy
OLLI (Ollie's Bargain Outlet Holdings, Inc.), in the Consumer Defensive sector, (Discount Stores industry), listed on NASDAQ.
Ollie's Bargain Outlet Holdings, Inc. operates as a leading discount retailer, offering a wide variety of brand-name goods. The company's diverse inventory includes home essentials such as housewares, bed and bath products, and floor coverings, as well as food items, health and beauty aids, books, stationery, toys, and electronics. Additionally, they stock hardware, confectionery, apparel, sporting goods, pet supplies, and lawn and garden items. Ollie's markets its products under various proprietary labels, including Ollie's, Ollie's Bargain Outlet, Good Stuff Cheap, Ollie's Army, Real Brands Real Cheap!, Real Brands! Real Bargains, Sarasota Breeze, Steelton Tools, American Way, and Middleton Home. As of August 3, 2022, the company maintained 450 retail locations across 29 states, covering approximately half of the United States.
OLLI (Ollie's Bargain Outlet Holdings, Inc.) trades in the Consumer Defensive sector, specifically Discount Stores, with a market capitalization of approximately $4.35B, a trailing P/E of 17.55, a beta of 0.46 versus the broader market, a 52-week range of 70.85-141.74, average daily share volume of 1.8M, a public-listing history dating back to 2015, approximately 6K full-time employees. These structural characteristics shape how OLLI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.46 indicates OLLI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a cash-secured put on OLLI?
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 OLLI snapshot
As of June 29, 2026, spot at $72.51, ATM IV 44.40%, IV rank 28.81%, expected move 12.73%. The cash-secured put on OLLI 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 OLLI specifically: OLLI IV at 44.40% is on the cheap side of its 1-year range, which means a premium-selling OLLI cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 12.73% (roughly $9.23 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 OLLI expiries trade a higher absolute premium for lower per-day decay. Position sizing on OLLI should anchor to the underlying notional of $72.51 per share and to the trader's directional view on OLLI stock.
OLLI cash-secured put setup
The OLLI 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 OLLI near $72.51, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OLLI 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 OLLI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $70.00 | $1.88 |
OLLI cash-secured put risk and reward
- Net Premium / Debit
- +$187.50
- Max Profit (per contract)
- $187.50
- Max Loss (per contract)
- -$6,811.50
- Breakeven(s)
- $68.13
- Risk / Reward Ratio
- 0.028
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
OLLI cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on OLLI. 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% | -$6,811.50 |
| $16.04 | -77.9% | -$5,208.37 |
| $32.07 | -55.8% | -$3,605.25 |
| $48.10 | -33.7% | -$2,002.12 |
| $64.14 | -11.6% | -$399.00 |
| $80.17 | +10.6% | +$187.50 |
| $96.20 | +32.7% | +$187.50 |
| $112.23 | +54.8% | +$187.50 |
| $128.26 | +76.9% | +$187.50 |
| $144.29 | +99.0% | +$187.50 |
When traders use cash-secured put on OLLI
Cash-secured puts on OLLI earn premium while a trader waits to acquire OLLI stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning OLLI.
OLLI thesis for this cash-secured put
The market-implied 1-standard-deviation range for OLLI extends from approximately $63.28 on the downside to $81.74 on the upside. A OLLI cash-secured put lets a trader earn premium while waiting to acquire OLLI 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 OLLI IV rank near 28.81% 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 OLLI at 44.40%. As a Consumer Defensive name, OLLI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OLLI-specific events.
OLLI 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. OLLI positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OLLI alongside the broader basket even when OLLI-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on OLLI carry tail risk when realized volatility exceeds the implied move; review historical OLLI earnings reactions and macro stress periods before sizing. Always rebuild the position from current OLLI chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on OLLI?
- A cash-secured put on OLLI is the cash-secured put strategy applied to OLLI (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 OLLI stock trading near $72.51, the strikes shown on this page are snapped to the nearest listed OLLI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OLLI 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 OLLI cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 44.40%), the computed maximum profit is $187.50 per contract and the computed maximum loss is -$6,811.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OLLI cash-secured put?
- The breakeven for the OLLI cash-secured put priced on this page is roughly $68.13 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 OLLI market-implied 1-standard-deviation expected move is approximately 12.73%; 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 OLLI?
- Cash-secured puts on OLLI earn premium while a trader waits to acquire OLLI stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning OLLI.
- How does current OLLI implied volatility affect this cash-secured put?
- OLLI ATM IV is at 44.40% with IV rank near 28.81%, 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.