ONB Cash-Secured Put Strategy
ONB (Old National Bancorp), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Old National Bancorp operates as the bank holding company for Old National Bank that provides various financial services to individual and commercial customers in the United States. It accepts deposit accounts, including noninterest-bearing demand, interest-bearing checking, negotiable order of withdrawal, savings and money market, and time deposits; and offers loans, such as home equity lines of credit, residential real estate loans, consumer loans, commercial loans, commercial real estate loans, letters of credit, and lease financing. The company also provides debit and automated teller machine cards, telephone access, online banking, and other electronic and mobile banking services; cash management, private banking, brokerage, trust, investment advisory, and other traditional banking services; wealth management, investment, and foreign currency services; and treasury management, merchant, health savings, and capital markets services, as well as community development lending and equity investment solutions. As of December 31, 2021, it operated a total of 162 banking centers located primarily in the states of Indiana, Kentucky, Michigan, Minnesota, and Wisconsin. Old National Bancorp was founded in 1834 and is headquartered in Evansville, Indiana.
ONB (Old National Bancorp) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $9.06B, a trailing P/E of 11.93, a beta of 0.85 versus the broader market, a 52-week range of 19.39-26.17, average daily share volume of 3.2M, a public-listing history dating back to 1984, approximately 4K full-time employees. These structural characteristics shape how ONB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.85 places ONB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.93 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. ONB 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 ONB?
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 ONB snapshot
As of May 15, 2026, spot at $23.29, ATM IV 28.90%, IV rank 11.39%, expected move 8.29%. The cash-secured put on ONB 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 34-day expiry.
Why this cash-secured put structure on ONB specifically: ONB IV at 28.90% is on the cheap side of its 1-year range, which means a premium-selling ONB cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.29% (roughly $1.93 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ONB expiries trade a higher absolute premium for lower per-day decay. Position sizing on ONB should anchor to the underlying notional of $23.29 per share and to the trader's directional view on ONB stock.
ONB cash-secured put setup
The ONB 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 ONB near $23.29, the first option leg uses a $22.13 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ONB chain at a 34-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 ONB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $22.13 | N/A |
ONB 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.
ONB cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ONB. 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 ONB
Cash-secured puts on ONB earn premium while a trader waits to acquire ONB stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ONB.
ONB thesis for this cash-secured put
The market-implied 1-standard-deviation range for ONB extends from approximately $21.36 on the downside to $25.22 on the upside. A ONB cash-secured put lets a trader earn premium while waiting to acquire ONB 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 ONB IV rank near 11.39% 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 ONB at 28.90%. As a Financial Services name, ONB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ONB-specific events.
ONB 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. ONB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ONB alongside the broader basket even when ONB-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ONB carry tail risk when realized volatility exceeds the implied move; review historical ONB earnings reactions and macro stress periods before sizing. Always rebuild the position from current ONB chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on ONB?
- A cash-secured put on ONB is the cash-secured put strategy applied to ONB (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 ONB stock trading near $23.29, the strikes shown on this page are snapped to the nearest listed ONB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ONB 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 ONB cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 28.90%), 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 ONB cash-secured put?
- The breakeven for the ONB 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 ONB market-implied 1-standard-deviation expected move is approximately 8.29%; 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 ONB?
- Cash-secured puts on ONB earn premium while a trader waits to acquire ONB stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ONB.
- How does current ONB implied volatility affect this cash-secured put?
- ONB ATM IV is at 28.90% with IV rank near 11.39%, 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.