PKOH Cash-Secured Put Strategy
PKOH (Park-Ohio Holdings Corp.), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.
Park-Ohio Holdings Corp. provides supply chain management outsourcing services, capital equipment, and manufactured components in the United States, Europe, Asia, Mexico, Canada, and internationally. It operates through three segments: Supply Technologies, Assembly Components, and Engineered Products. The Supply Technologies segment offers Total Supply Management solution, including engineering and design support, part usage and cost analysis, supplier selection, quality assurance, bar coding, product packaging and tracking, just-in-time and point-of-use delivery, electronic billing, and ongoing technical support services, as well as provides spare parts and aftermarket products; and production components, such as valves, fuel hose assemblies, electro-mechanical hardware, labels, fittings, steering components, and other products. It also engineers and manufactures precision cold-formed and cold-extruded fasteners and other products, including locknuts, SPAC nuts, SPAC bolts, and wheel hardware. The Assembly Components segment manufactures aluminum products, direct fuel injection fuel rails and pipes, fuel filler pipes, and flexible multi-layer plastic and rubber assemblies; turbo charging and coolant hoses; and fluid handling systems. It also offers machining services, as well as value-added services, such as design engineering, machining, and part assembly.
PKOH (Park-Ohio Holdings Corp.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $433.0M, a trailing P/E of 16.94, a beta of 1.17 versus the broader market, a 52-week range of 15.52-31.92, average daily share volume of 45K, a public-listing history dating back to 1973, approximately 6K full-time employees. These structural characteristics shape how PKOH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.17 places PKOH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PKOH 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 PKOH?
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 PKOH snapshot
As of May 15, 2026, spot at $30.74, ATM IV 88.80%, IV rank 17.48%, expected move 25.46%. The cash-secured put on PKOH 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 PKOH specifically: PKOH IV at 88.80% is on the cheap side of its 1-year range, which means a premium-selling PKOH cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 25.46% (roughly $7.83 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 PKOH expiries trade a higher absolute premium for lower per-day decay. Position sizing on PKOH should anchor to the underlying notional of $30.74 per share and to the trader's directional view on PKOH stock.
PKOH cash-secured put setup
The PKOH 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 PKOH near $30.74, the first option leg uses a $29.20 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PKOH 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 PKOH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $29.20 | N/A |
PKOH 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.
PKOH cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on PKOH. 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 PKOH
Cash-secured puts on PKOH earn premium while a trader waits to acquire PKOH stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PKOH.
PKOH thesis for this cash-secured put
The market-implied 1-standard-deviation range for PKOH extends from approximately $22.91 on the downside to $38.57 on the upside. A PKOH cash-secured put lets a trader earn premium while waiting to acquire PKOH 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 PKOH IV rank near 17.48% 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 PKOH at 88.80%. As a Industrials name, PKOH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PKOH-specific events.
PKOH 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. PKOH positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PKOH alongside the broader basket even when PKOH-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on PKOH carry tail risk when realized volatility exceeds the implied move; review historical PKOH earnings reactions and macro stress periods before sizing. Always rebuild the position from current PKOH chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on PKOH?
- A cash-secured put on PKOH is the cash-secured put strategy applied to PKOH (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 PKOH stock trading near $30.74, the strikes shown on this page are snapped to the nearest listed PKOH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PKOH 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 PKOH cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 88.80%), 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 PKOH cash-secured put?
- The breakeven for the PKOH 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 PKOH market-implied 1-standard-deviation expected move is approximately 25.46%; 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 PKOH?
- Cash-secured puts on PKOH earn premium while a trader waits to acquire PKOH stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PKOH.
- How does current PKOH implied volatility affect this cash-secured put?
- PKOH ATM IV is at 88.80% with IV rank near 17.48%, 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.