ONON Cash-Secured Put Strategy
ONON (On Holding AG), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NYSE.
On Holding AG develops and distributes sports products worldwide. It offers athletic footwear, apparel, and accessories. The company offers its products through independent retailers and distributors, online, and stores. On Holding AG was founded in 2010 and is headquartered in Zurich, Switzerland.
ONON (On Holding AG) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $11.80B, a trailing P/E of 36.39, a beta of 2.09 versus the broader market, a 52-week range of 31.41-61.288, average daily share volume of 6.9M, a public-listing history dating back to 2021, approximately 3K full-time employees. These structural characteristics shape how ONON stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.09 indicates ONON 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 36.39 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 ONON?
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 ONON snapshot
As of May 15, 2026, spot at $37.36, ATM IV 47.21%, IV rank 39.72%, expected move 13.54%. The cash-secured put on ONON 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 ONON specifically: ONON IV at 47.21% is mid-range versus its 1-year history, so the credit collected on a ONON cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 13.54% (roughly $5.06 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 ONON expiries trade a higher absolute premium for lower per-day decay. Position sizing on ONON should anchor to the underlying notional of $37.36 per share and to the trader's directional view on ONON stock.
ONON cash-secured put setup
The ONON 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 ONON near $37.36, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ONON 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 ONON shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $35.00 | $0.97 |
ONON cash-secured put risk and reward
- Net Premium / Debit
- +$96.50
- Max Profit (per contract)
- $96.50
- Max Loss (per contract)
- -$3,402.50
- Breakeven(s)
- $34.04
- 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.
ONON cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ONON. 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% | -$3,402.50 |
| $8.27 | -77.9% | -$2,576.56 |
| $16.53 | -55.8% | -$1,750.62 |
| $24.79 | -33.7% | -$924.68 |
| $33.05 | -11.5% | -$98.74 |
| $41.31 | +10.6% | +$96.50 |
| $49.57 | +32.7% | +$96.50 |
| $57.83 | +54.8% | +$96.50 |
| $66.09 | +76.9% | +$96.50 |
| $74.34 | +99.0% | +$96.50 |
When traders use cash-secured put on ONON
Cash-secured puts on ONON earn premium while a trader waits to acquire ONON stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ONON.
ONON thesis for this cash-secured put
The market-implied 1-standard-deviation range for ONON extends from approximately $32.30 on the downside to $42.42 on the upside. A ONON cash-secured put lets a trader earn premium while waiting to acquire ONON 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 ONON IV rank near 39.72% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on ONON should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, ONON options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ONON-specific events.
ONON 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. ONON positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ONON alongside the broader basket even when ONON-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ONON carry tail risk when realized volatility exceeds the implied move; review historical ONON earnings reactions and macro stress periods before sizing. Always rebuild the position from current ONON chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on ONON?
- A cash-secured put on ONON is the cash-secured put strategy applied to ONON (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 ONON stock trading near $37.36, the strikes shown on this page are snapped to the nearest listed ONON chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ONON 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 ONON cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 47.21%), the computed maximum profit is $96.50 per contract and the computed maximum loss is -$3,402.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ONON cash-secured put?
- The breakeven for the ONON cash-secured put priced on this page is roughly $34.04 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 ONON market-implied 1-standard-deviation expected move is approximately 13.54%; 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 ONON?
- Cash-secured puts on ONON earn premium while a trader waits to acquire ONON stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ONON.
- How does current ONON implied volatility affect this cash-secured put?
- ONON ATM IV is at 47.21% with IV rank near 39.72%, 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.