PKE Cash-Secured Put Strategy
PKE (Park Aerospace Corp.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.
Park Aerospace Corp. develops and manufactures solution and hot-melt advanced composite materials used to produce composite structures for the aerospace market in North America, Asia, and Europe. It offers advanced composite materials, including film adhesives and lightning strike materials that are used to produce primary and secondary structures for jet engines, large and regional transport aircrafts, military aircrafts, unmanned aerial vehicles, business jets, general aviation aircrafts, and rotary wing aircrafts. The company also provides specialty ablative materials for rocket motors and nozzles; and specially designed materials for radome applications. In addition, it designs and fabricates composite parts, structures and assemblies, and low volume tooling for the aerospace industry. The company was formerly known as Park Electrochemical Corp. and changed its name to Park Aerospace Corp. in July 2019. Park Aerospace Corp. was incorporated in 1954 and is based in Westbury, New York.
PKE (Park Aerospace Corp.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $680.7M, a trailing P/E of 78.36, a beta of 0.45 versus the broader market, a 52-week range of 12.07-35.86, average daily share volume of 253K, a public-listing history dating back to 1980, approximately 123 full-time employees. These structural characteristics shape how PKE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.45 indicates PKE 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 78.36 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. PKE 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 PKE?
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 PKE snapshot
As of May 15, 2026, spot at $33.53, ATM IV 60.80%, IV rank 26.79%, expected move 17.43%. The cash-secured put on PKE 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 PKE specifically: PKE IV at 60.80% is on the cheap side of its 1-year range, which means a premium-selling PKE cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 17.43% (roughly $5.84 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 PKE expiries trade a higher absolute premium for lower per-day decay. Position sizing on PKE should anchor to the underlying notional of $33.53 per share and to the trader's directional view on PKE stock.
PKE cash-secured put setup
The PKE 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 PKE near $33.53, the first option leg uses a $31.85 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PKE 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 PKE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $31.85 | N/A |
PKE 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.
PKE cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on PKE. 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 PKE
Cash-secured puts on PKE earn premium while a trader waits to acquire PKE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PKE.
PKE thesis for this cash-secured put
The market-implied 1-standard-deviation range for PKE extends from approximately $27.69 on the downside to $39.37 on the upside. A PKE cash-secured put lets a trader earn premium while waiting to acquire PKE 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 PKE IV rank near 26.79% 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 PKE at 60.80%. As a Industrials name, PKE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PKE-specific events.
PKE 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. PKE positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PKE alongside the broader basket even when PKE-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on PKE carry tail risk when realized volatility exceeds the implied move; review historical PKE earnings reactions and macro stress periods before sizing. Always rebuild the position from current PKE chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on PKE?
- A cash-secured put on PKE is the cash-secured put strategy applied to PKE (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 PKE stock trading near $33.53, the strikes shown on this page are snapped to the nearest listed PKE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PKE 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 PKE cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 60.80%), 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 PKE cash-secured put?
- The breakeven for the PKE 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 PKE market-implied 1-standard-deviation expected move is approximately 17.43%; 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 PKE?
- Cash-secured puts on PKE earn premium while a trader waits to acquire PKE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PKE.
- How does current PKE implied volatility affect this cash-secured put?
- PKE ATM IV is at 60.80% with IV rank near 26.79%, 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.