ORLY Cash-Secured Put Strategy
ORLY (O'Reilly Automotive, Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.
O'Reilly Automotive, Inc., together with its subsidiaries, operates as a retailer and supplier of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. The company provides new and remanufactured automotive hard parts and maintenance items, such as alternators, batteries, brake system components, belts, chassis parts, driveline parts, engine parts, fuel pumps, hoses, starters, temperature control, water pumps, antifreeze, appearance products, engine additives, filters, fluids, lighting products, and oil and wiper blades; and accessories, including floor mats, seat covers, and truck accessories. Its stores offer auto body paint and related materials, automotive tools, and professional service provider service equipment. The company's stores also provide enhanced services and programs comprising used oil, oil filter, and battery recycling; battery, wiper, and bulb replacement; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; drum and rotor resurfacing; custom hydraulic hoses; and professional paint shop mixing and related materials. Its stores offer do-it-yourself and professional service provider customers a selection of products for domestic and imported automobiles, vans, and trucks. As of December 31, 2021, the company owned and operated 5,759 stores in the United States, and 25 stores in Mexico.
ORLY (O'Reilly Automotive, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $74.34B, a trailing P/E of 28.89, a beta of 0.58 versus the broader market, a 52-week range of 86.77-108.72, average daily share volume of 5.6M, a public-listing history dating back to 1993, approximately 93K full-time employees. These structural characteristics shape how ORLY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.58 indicates ORLY 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 ORLY?
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 ORLY snapshot
As of May 15, 2026, spot at $88.57, ATM IV 24.10%, IV rank 5.43%, expected move 6.91%. The cash-secured put on ORLY 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 ORLY specifically: ORLY IV at 24.10% is on the cheap side of its 1-year range, which means a premium-selling ORLY cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.91% (roughly $6.12 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 ORLY expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORLY should anchor to the underlying notional of $88.57 per share and to the trader's directional view on ORLY stock.
ORLY cash-secured put setup
The ORLY 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 ORLY near $88.57, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ORLY 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 ORLY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $85.00 | $1.15 |
ORLY cash-secured put risk and reward
- Net Premium / Debit
- +$115.00
- Max Profit (per contract)
- $115.00
- Max Loss (per contract)
- -$8,384.00
- Breakeven(s)
- $83.85
- Risk / Reward Ratio
- 0.014
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
ORLY cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ORLY. 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% | -$8,384.00 |
| $19.59 | -77.9% | -$6,425.78 |
| $39.17 | -55.8% | -$4,467.56 |
| $58.76 | -33.7% | -$2,509.34 |
| $78.34 | -11.6% | -$551.12 |
| $97.92 | +10.6% | +$115.00 |
| $117.50 | +32.7% | +$115.00 |
| $137.09 | +54.8% | +$115.00 |
| $156.67 | +76.9% | +$115.00 |
| $176.25 | +99.0% | +$115.00 |
When traders use cash-secured put on ORLY
Cash-secured puts on ORLY earn premium while a trader waits to acquire ORLY stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ORLY.
ORLY thesis for this cash-secured put
The market-implied 1-standard-deviation range for ORLY extends from approximately $82.45 on the downside to $94.69 on the upside. A ORLY cash-secured put lets a trader earn premium while waiting to acquire ORLY 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 ORLY IV rank near 5.43% 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 ORLY at 24.10%. As a Consumer Cyclical name, ORLY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ORLY-specific events.
ORLY 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. ORLY positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ORLY alongside the broader basket even when ORLY-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ORLY carry tail risk when realized volatility exceeds the implied move; review historical ORLY earnings reactions and macro stress periods before sizing. Always rebuild the position from current ORLY chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on ORLY?
- A cash-secured put on ORLY is the cash-secured put strategy applied to ORLY (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 ORLY stock trading near $88.57, the strikes shown on this page are snapped to the nearest listed ORLY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ORLY 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 ORLY cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 24.10%), the computed maximum profit is $115.00 per contract and the computed maximum loss is -$8,384.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ORLY cash-secured put?
- The breakeven for the ORLY cash-secured put priced on this page is roughly $83.85 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 ORLY market-implied 1-standard-deviation expected move is approximately 6.91%; 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 ORLY?
- Cash-secured puts on ORLY earn premium while a trader waits to acquire ORLY stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ORLY.
- How does current ORLY implied volatility affect this cash-secured put?
- ORLY ATM IV is at 24.10% with IV rank near 5.43%, 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.