ON Cash-Secured Put Strategy
ON (ON Semiconductor Corporation), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
ON Semiconductor Corporation provides intelligent sensing and power solutions worldwide. Its intelligent power technologies enable the electrification of the automotive industry that allows for lighter and longer-range electric vehicles, empowers fast-charging systems, and propels sustainable energy for the solar strings, industrial power, and storage systems. The company operates through three segments the Power Solutions Group, the Advanced Solutions Group, and the Intelligent Sensing Group segments. It offers analog, discrete, module, and integrated semiconductor products that perform multiple application functions, including power switching and conversion, signal conditioning, circuit protection, signal amplification, and voltage regulation functions. The company also designs and develops analog, mixed-signal, advanced logic, application specific standard product and ASICs, radio frequency, and integrated power solutions for end-users in end-markets, as well as provides foundry and design services for government customers. In addition, it develops complementary metal oxide semiconductor image sensors, image signal processors, and single photon detectors, including silicon photomultipliers and single photon avalanche diode arrays, as well as actuator drivers for autofocus and image stabilization for a broad base of end-users in various end-markets.
ON (ON Semiconductor Corporation) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $45.35B, a trailing P/E of 79.49, a beta of 1.94 versus the broader market, a 52-week range of 40.62-115.99, average daily share volume of 9.4M, a public-listing history dating back to 2000, approximately 26K full-time employees. These structural characteristics shape how ON stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.94 indicates ON 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 79.49 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 ON?
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 ON snapshot
As of May 15, 2026, spot at $113.87, ATM IV 66.67%, IV rank 79.20%, expected move 19.11%. The cash-secured put on ON 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 ON specifically: ON IV at 66.67% is rich versus its 1-year range, which favors premium-selling structures like a ON cash-secured put, with a market-implied 1-standard-deviation move of approximately 19.11% (roughly $21.77 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 ON expiries trade a higher absolute premium for lower per-day decay. Position sizing on ON should anchor to the underlying notional of $113.87 per share and to the trader's directional view on ON stock.
ON cash-secured put setup
The ON 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 ON near $113.87, the first option leg uses a $108.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ON 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 ON shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $108.00 | $5.18 |
ON cash-secured put risk and reward
- Net Premium / Debit
- +$517.50
- Max Profit (per contract)
- $517.50
- Max Loss (per contract)
- -$10,281.50
- Breakeven(s)
- $102.83
- Risk / Reward Ratio
- 0.050
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
ON cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ON. 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% | -$10,281.50 |
| $25.19 | -77.9% | -$7,763.88 |
| $50.36 | -55.8% | -$5,246.26 |
| $75.54 | -33.7% | -$2,728.65 |
| $100.71 | -11.6% | -$211.03 |
| $125.89 | +10.6% | +$517.50 |
| $151.07 | +32.7% | +$517.50 |
| $176.24 | +54.8% | +$517.50 |
| $201.42 | +76.9% | +$517.50 |
| $226.60 | +99.0% | +$517.50 |
When traders use cash-secured put on ON
Cash-secured puts on ON earn premium while a trader waits to acquire ON stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ON.
ON thesis for this cash-secured put
The market-implied 1-standard-deviation range for ON extends from approximately $92.10 on the downside to $135.64 on the upside. A ON cash-secured put lets a trader earn premium while waiting to acquire ON 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 ON IV rank near 79.20% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on ON at 66.67%. As a Technology name, ON options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ON-specific events.
ON 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. ON positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ON alongside the broader basket even when ON-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ON carry tail risk when realized volatility exceeds the implied move; review historical ON earnings reactions and macro stress periods before sizing. Always rebuild the position from current ON chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on ON?
- A cash-secured put on ON is the cash-secured put strategy applied to ON (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 ON stock trading near $113.87, the strikes shown on this page are snapped to the nearest listed ON chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ON 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 ON cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 66.67%), the computed maximum profit is $517.50 per contract and the computed maximum loss is -$10,281.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ON cash-secured put?
- The breakeven for the ON cash-secured put priced on this page is roughly $102.83 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 ON market-implied 1-standard-deviation expected move is approximately 19.11%; 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 ON?
- Cash-secured puts on ON earn premium while a trader waits to acquire ON stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ON.
- How does current ON implied volatility affect this cash-secured put?
- ON ATM IV is at 66.67% with IV rank near 79.20%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.