POWI Cash-Secured Put Strategy
POWI (Power Integrations, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Power Integrations, Inc. designs, develops, manufactures, and markets analog and mixed-signal integrated circuits (ICs), and other electronic components and circuitry used in high-voltage power conversion worldwide. The company provides a range of alternating current to direct current power conversion products that address power supply ranging from less than one watt of output to approximately 500 watts of output for mobile-device chargers, consumer appliances, utility meters, LCD monitors, main and standby power supplies for desktop computers and TVs, LED lighting, and various other consumer and industrial applications, as well as power conversion in high-power applications comprising industrial motors, solar and wind-power systems, electric vehicles, and high-voltage DC transmission systems. It also offers high-voltage diodes; high-voltage gate-driver products used to operate high-voltage switches, such as insulated-gate bipolar transistors and silicon-carbide MOSFETs under the SCALE and SCALE-2 product-family names; and SCALE-iDriver for use in powertrain and charging applications for electric vehicles. In addition, the company provides motor-driver ICs for use in refrigerator compressors, ceiling fans, and air purifiers, as well as pumps, fans, and blowers used in consumer appliances, such as dishwashers and laundry machines. It serves communications, computer, consumer, and industrial markets. The company sells its products to original equipment manufacturers and merchant power supply manufacturers through direct sales force, as well as a network of independent sales representatives and distributors.
POWI (Power Integrations, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $3.96B, a trailing P/E of 237.86, a beta of 1.54 versus the broader market, a 52-week range of 30.86-81.59, average daily share volume of 1.0M, a public-listing history dating back to 1997, approximately 865 full-time employees. These structural characteristics shape how POWI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.54 indicates POWI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 237.86 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. POWI 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 POWI?
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 POWI snapshot
As of May 15, 2026, spot at $73.26, ATM IV 71.50%, IV rank 17.20%, expected move 20.50%. The cash-secured put on POWI 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 63-day expiry.
Why this cash-secured put structure on POWI specifically: POWI IV at 71.50% is on the cheap side of its 1-year range, which means a premium-selling POWI cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 20.50% (roughly $15.02 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated POWI expiries trade a higher absolute premium for lower per-day decay. Position sizing on POWI should anchor to the underlying notional of $73.26 per share and to the trader's directional view on POWI stock.
POWI cash-secured put setup
The POWI 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 POWI near $73.26, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed POWI chain at a 63-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 POWI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $70.00 | $7.20 |
POWI cash-secured put risk and reward
- Net Premium / Debit
- +$720.00
- Max Profit (per contract)
- $720.00
- Max Loss (per contract)
- -$6,279.00
- Breakeven(s)
- $62.80
- Risk / Reward Ratio
- 0.115
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
POWI cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on POWI. 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% | -$6,279.00 |
| $16.21 | -77.9% | -$4,659.29 |
| $32.40 | -55.8% | -$3,039.58 |
| $48.60 | -33.7% | -$1,419.87 |
| $64.80 | -11.6% | +$199.83 |
| $81.00 | +10.6% | +$720.00 |
| $97.19 | +32.7% | +$720.00 |
| $113.39 | +54.8% | +$720.00 |
| $129.59 | +76.9% | +$720.00 |
| $145.78 | +99.0% | +$720.00 |
When traders use cash-secured put on POWI
Cash-secured puts on POWI earn premium while a trader waits to acquire POWI stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning POWI.
POWI thesis for this cash-secured put
The market-implied 1-standard-deviation range for POWI extends from approximately $58.24 on the downside to $88.28 on the upside. A POWI cash-secured put lets a trader earn premium while waiting to acquire POWI 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 POWI IV rank near 17.20% 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 POWI at 71.50%. As a Technology name, POWI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to POWI-specific events.
POWI 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. POWI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move POWI alongside the broader basket even when POWI-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on POWI carry tail risk when realized volatility exceeds the implied move; review historical POWI earnings reactions and macro stress periods before sizing. Always rebuild the position from current POWI chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on POWI?
- A cash-secured put on POWI is the cash-secured put strategy applied to POWI (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 POWI stock trading near $73.26, the strikes shown on this page are snapped to the nearest listed POWI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are POWI 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 POWI cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 71.50%), the computed maximum profit is $720.00 per contract and the computed maximum loss is -$6,279.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a POWI cash-secured put?
- The breakeven for the POWI cash-secured put priced on this page is roughly $62.80 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 POWI market-implied 1-standard-deviation expected move is approximately 20.50%; 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 POWI?
- Cash-secured puts on POWI earn premium while a trader waits to acquire POWI stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning POWI.
- How does current POWI implied volatility affect this cash-secured put?
- POWI ATM IV is at 71.50% with IV rank near 17.20%, 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.