PCAR Cash-Secured Put Strategy
PCAR (PACCAR Inc), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.
PACCAR Inc is a global leader specializing in the design, production, and distribution of commercial trucks, covering light, medium, and heavy-duty classes. Its market reach extends across the United States, Europe, Mexico, South America, Australia, and other international territories. The company's operations are divided into three principal segments: Truck, Parts, and Financial Services. The Truck division focuses on engineering, manufacturing, and supplying vehicles tailored for both long-distance highway travel and challenging off-highway applications, primarily for hauling commercial and consumer goods. These vehicles are sold worldwide through an expansive network of independent dealerships, prominently featuring the Kenworth, Peterbilt, and DAF brands. The Parts segment is dedicated to supplying aftermarket components for its trucks and associated commercial vehicles.
PCAR (PACCAR Inc) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $68.99B, a trailing P/E of 27.58, a beta of 0.99 versus the broader market, a 52-week range of 92.25-139.24, average daily share volume of 3.2M, a public-listing history dating back to 1980, approximately 26K full-time employees. These structural characteristics shape how PCAR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.99 places PCAR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PCAR 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 PCAR?
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.
PCAR snapshot
As of August 14, 2026, spot at $130.76, ATM IV 25.80%, IV rank 1.52%, expected move 7.40%. The cash-secured put on PCAR below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this cash-secured put structure on PCAR specifically: PCAR IV at 25.80% is on the cheap side of its 1-year range, which means a premium-selling PCAR cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.40% (roughly $9.67 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PCAR expiries trade a higher absolute premium for lower per-day decay. Position sizing on PCAR should anchor to the underlying notional of $130.76 per share and to the trader's directional view on PCAR stock.
PCAR cash-secured put setup
The PCAR cash-secured put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PCAR at $130.76 on that close, the first option leg uses a $123.60 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PCAR chain at a 35-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 PCAR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $123.60 | $1.63 |
PCAR cash-secured put risk and reward
- Net Premium / Debit
- +$162.50
- Max Profit (per contract)
- $162.50
- Max Loss (per contract)
- -$12,196.50
- Breakeven(s)
- $121.98
- Risk / Reward Ratio
- 0.013
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
PCAR cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on PCAR. 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% | -$12,196.50 |
| $28.92 | -77.9% | -$9,305.43 |
| $57.83 | -55.8% | -$6,414.37 |
| $86.74 | -33.7% | -$3,523.30 |
| $115.65 | -11.6% | -$632.24 |
| $144.56 | +10.6% | +$162.50 |
| $173.47 | +32.7% | +$162.50 |
| $202.38 | +54.8% | +$162.50 |
| $231.30 | +76.9% | +$162.50 |
| $260.21 | +99.0% | +$162.50 |
When traders use cash-secured put on PCAR
Cash-secured puts on PCAR earn premium while a trader waits to acquire PCAR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PCAR.
PCAR thesis for this cash-secured put
The market-implied 1-standard-deviation range for PCAR extends from approximately $121.09 on the downside to $140.43 on the upside. A PCAR cash-secured put lets a trader earn premium while waiting to acquire PCAR 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 PCAR IV rank near 1.52% 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 PCAR at 25.80%. As a Industrials name, PCAR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PCAR-specific events.
PCAR 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. PCAR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PCAR alongside the broader basket even when PCAR-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on PCAR carry tail risk when realized volatility exceeds the implied move; review historical PCAR earnings reactions and macro stress periods before sizing. Always rebuild the position from current PCAR chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on PCAR?
- A cash-secured put on PCAR is the cash-secured put strategy applied to PCAR (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 PCAR stock at $130.76 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PCAR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PCAR 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 PCAR cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 25.80%), the computed maximum profit is $162.50 per contract and the computed maximum loss is -$12,196.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PCAR cash-secured put?
- The breakeven for the PCAR cash-secured put priced on this page is roughly $121.98 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The PCAR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.40%; 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 PCAR?
- Cash-secured puts on PCAR earn premium while a trader waits to acquire PCAR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PCAR.
- How does current PCAR implied volatility affect this cash-secured put?
- PCAR ATM IV is at 25.80% with IV rank near 1.52%, 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.