PECO Cash-Secured Put Strategy
PECO (Phillips Edison & Co.), in the Real Estate sector, (REIT - Retail industry), listed on NASDAQ.
Phillips Edison & Company, Inc. is one of the nation’s largest owners and operators of high-quality, grocery-anchored neighborhood shopping centers. PECO has generated strong results through its vertically integrated operating platform and national footprint of well-occupied shopping centers. PECO’s centers feature a mix of national and regional retailers providing necessity-based goods and services in fundamentally strong markets throughout the United States. PECO’s top grocery anchors include Kroger, Publix, Albertsons and Ahold Delhaize. As of December 31, 2025, PECO managed 324 shopping centers, including 297 wholly owned centers comprising 33.5 million square feet across 31 states and 27 shopping centers owned in three institutional joint ventures. PECO is focused on creating great omni-channel, grocery-anchored shopping experiences and improving communities, one neighborhood shopping center at a time.
PECO (Phillips Edison & Co.) trades in the Real Estate sector, specifically REIT - Retail, with a market capitalization of approximately $5.33B, a trailing P/E of 45.88, a beta of 0.56 versus the broader market, a 52-week range of 32.84-42.7, average daily share volume of 1.0M, a public-listing history dating back to 2021, approximately 313 full-time employees. These structural characteristics shape how PECO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.56 indicates PECO has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 45.88 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. PECO 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 PECO?
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 PECO snapshot
As of June 30, 2026, spot at $41.79, ATM IV 39.90%, IV rank 31.52%, expected move 11.44%. The cash-secured put on PECO 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 17-day expiry.
Why this cash-secured put structure on PECO specifically: PECO IV at 39.90% is mid-range versus its 1-year history, so the credit collected on a PECO cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 11.44% (roughly $4.78 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PECO expiries trade a higher absolute premium for lower per-day decay. Position sizing on PECO should anchor to the underlying notional of $41.79 per share and to the trader's directional view on PECO stock.
PECO cash-secured put setup
The PECO 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 PECO near $41.79, the first option leg uses a $39.70 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PECO chain at a 17-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 PECO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $39.70 | N/A |
PECO 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.
PECO cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on PECO. 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 PECO
Cash-secured puts on PECO earn premium while a trader waits to acquire PECO stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PECO.
PECO thesis for this cash-secured put
The market-implied 1-standard-deviation range for PECO extends from approximately $37.01 on the downside to $46.57 on the upside. A PECO cash-secured put lets a trader earn premium while waiting to acquire PECO 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 PECO IV rank near 31.52% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on PECO should anchor more to the directional view and the expected-move geometry. As a Real Estate name, PECO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PECO-specific events.
PECO 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. PECO positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PECO alongside the broader basket even when PECO-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on PECO carry tail risk when realized volatility exceeds the implied move; review historical PECO earnings reactions and macro stress periods before sizing. Always rebuild the position from current PECO chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on PECO?
- A cash-secured put on PECO is the cash-secured put strategy applied to PECO (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 PECO stock trading near $41.79, the strikes shown on this page are snapped to the nearest listed PECO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PECO 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 PECO cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 39.90%), 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 PECO cash-secured put?
- The breakeven for the PECO 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 PECO market-implied 1-standard-deviation expected move is approximately 11.44%; 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 PECO?
- Cash-secured puts on PECO earn premium while a trader waits to acquire PECO stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PECO.
- How does current PECO implied volatility affect this cash-secured put?
- PECO ATM IV is at 39.90% with IV rank near 31.52%, 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.