PFGC Cash-Secured Put Strategy
PFGC (Performance Food Group Co), in the Consumer Defensive sector, (Food Distribution industry), listed on NYSE.
Performance Food Group Company, through its subsidiaries, engages in the marketing and distribution of food and food-related products in North America. It operates through three segments: Foodservice, Convenience, and Specialty. The company offers beef, pork, poultry, and seafood; frozen food and refrigerated products; dry groceries comprising cleaning and kitchen supplies and disposables; candy, snacks, and beverages; and fresh products, groceries, dairy, bread, beverages, general merchandise, and health and beauty care products, as well as cigarettes and other nicotine products. It also operates distribution centers. In addition, the company provides marketing programs and technology solutions to customer locations, as well as value-added services in the areas of product selection and procurement, menu development, and operational strategy. It serves individual restaurants, national and regional chain restaurants, vending distributors, theaters, retailers, and national, regional, and independent convenience stores.
PFGC (Performance Food Group Co) trades in the Consumer Defensive sector, specifically Food Distribution, with a market capitalization of approximately $17.35B, a trailing P/E of 52.48, a beta of 0.93 versus the broader market, a 52-week range of 80.82-110.66, average daily share volume of 1.7M, a public-listing history dating back to 2015, approximately 43K full-time employees. These structural characteristics shape how PFGC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.93 places PFGC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 52.48 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 PFGC?
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 PFGC snapshot
As of June 29, 2026, spot at $111.73, ATM IV 27.20%, IV rank 18.64%, expected move 7.80%. The cash-secured put on PFGC 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 52-day expiry.
Why this cash-secured put structure on PFGC specifically: PFGC IV at 27.20% is on the cheap side of its 1-year range, which means a premium-selling PFGC cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.80% (roughly $8.71 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PFGC expiries trade a higher absolute premium for lower per-day decay. Position sizing on PFGC should anchor to the underlying notional of $111.73 per share and to the trader's directional view on PFGC stock.
PFGC cash-secured put setup
The PFGC 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 PFGC near $111.73, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PFGC chain at a 52-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 PFGC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $105.00 | $2.50 |
PFGC cash-secured put risk and reward
- Net Premium / Debit
- +$250.00
- Max Profit (per contract)
- $250.00
- Max Loss (per contract)
- -$10,249.00
- Breakeven(s)
- $102.50
- Risk / Reward Ratio
- 0.024
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
PFGC cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on PFGC. 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% | -$10,249.00 |
| $24.71 | -77.9% | -$7,778.70 |
| $49.42 | -55.8% | -$5,308.40 |
| $74.12 | -33.7% | -$2,838.10 |
| $98.82 | -11.6% | -$367.79 |
| $123.53 | +10.6% | +$250.00 |
| $148.23 | +32.7% | +$250.00 |
| $172.93 | +54.8% | +$250.00 |
| $197.63 | +76.9% | +$250.00 |
| $222.34 | +99.0% | +$250.00 |
When traders use cash-secured put on PFGC
Cash-secured puts on PFGC earn premium while a trader waits to acquire PFGC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PFGC.
PFGC thesis for this cash-secured put
The market-implied 1-standard-deviation range for PFGC extends from approximately $103.02 on the downside to $120.44 on the upside. A PFGC cash-secured put lets a trader earn premium while waiting to acquire PFGC 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 PFGC IV rank near 18.64% 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 PFGC at 27.20%. As a Consumer Defensive name, PFGC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PFGC-specific events.
PFGC 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. PFGC positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PFGC alongside the broader basket even when PFGC-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on PFGC carry tail risk when realized volatility exceeds the implied move; review historical PFGC earnings reactions and macro stress periods before sizing. Always rebuild the position from current PFGC chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on PFGC?
- A cash-secured put on PFGC is the cash-secured put strategy applied to PFGC (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 PFGC stock trading near $111.73, the strikes shown on this page are snapped to the nearest listed PFGC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PFGC 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 PFGC cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 27.20%), the computed maximum profit is $250.00 per contract and the computed maximum loss is -$10,249.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PFGC cash-secured put?
- The breakeven for the PFGC cash-secured put priced on this page is roughly $102.50 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 PFGC market-implied 1-standard-deviation expected move is approximately 7.80%; 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 PFGC?
- Cash-secured puts on PFGC earn premium while a trader waits to acquire PFGC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PFGC.
- How does current PFGC implied volatility affect this cash-secured put?
- PFGC ATM IV is at 27.20% with IV rank near 18.64%, 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.