PRIM Cash-Secured Put Strategy
PRIM (Primoris Services Corporation), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.
Primoris Services Corporation functions as a prominent specialized contracting firm, offering a wide array of services that include construction, fabrication, upkeep, modernization, and advanced engineering expertise throughout the United States and Canada. The company's operations are divided into three primary divisions: Utilities, Energy/Renewables, and Pipeline Services. The Utilities segment focuses on installing and maintaining both new and existing natural gas distribution networks, electrical transmission and distribution systems, and communications infrastructure. Within the Energy/Renewables segment, Primoris delivers comprehensive services such as engineering, procurement, and construction (EPC), alongside major civil projects like highway and bridge construction, demolition, site preparation, mass excavation, and flood control. This segment also provides retrofits, upgrades, repairs, and routine maintenance for industries ranging from renewable energy and energy storage to renewable fuels, petroleum refining, petrochemicals, and state departments of transportation. Finally, the Pipeline Services segment concentrates on the construction, maintenance, and integrity management of pipelines, in addition to installing compressor and pump stations and metering facilities for clients in the petroleum and petrochemical sectors, as well as gas, water, and sewer utility providers.
PRIM (Primoris Services Corporation) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $4.42B, a trailing P/E of 31.51, a beta of 1.44 versus the broader market, a 52-week range of 65-205.5, average daily share volume of 1.9M, a public-listing history dating back to 2008, approximately 19K full-time employees. These structural characteristics shape how PRIM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.44 indicates PRIM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. PRIM 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 PRIM?
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.
PRIM snapshot
As of August 14, 2026, spot at $82.96, ATM IV 58.60%, IV rank 34.65%, expected move 16.80%. The cash-secured put on PRIM below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this cash-secured put structure on PRIM specifically: PRIM IV at 58.60% is mid-range versus its 1-year history, so the credit collected on a PRIM cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 16.80% (roughly $13.94 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PRIM expiries trade a higher absolute premium for lower per-day decay. Position sizing on PRIM should anchor to the underlying notional of $82.96 per share and to the trader's directional view on PRIM stock.
PRIM cash-secured put setup
The PRIM cash-secured put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PRIM at $82.96 on that close, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PRIM chain at a 35-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 PRIM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $80.00 | $4.40 |
PRIM cash-secured put risk and reward
- Net Premium / Debit
- +$440.00
- Max Profit (per contract)
- $440.00
- Max Loss (per contract)
- -$7,559.00
- Breakeven(s)
- $75.60
- Risk / Reward Ratio
- 0.058
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
PRIM cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on PRIM. 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% | -$7,559.00 |
| $18.35 | -77.9% | -$5,724.82 |
| $36.69 | -55.8% | -$3,890.64 |
| $55.04 | -33.7% | -$2,056.46 |
| $73.38 | -11.6% | -$222.28 |
| $91.72 | +10.6% | +$440.00 |
| $110.06 | +32.7% | +$440.00 |
| $128.40 | +54.8% | +$440.00 |
| $146.74 | +76.9% | +$440.00 |
| $165.09 | +99.0% | +$440.00 |
When traders use cash-secured put on PRIM
Cash-secured puts on PRIM earn premium while a trader waits to acquire PRIM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PRIM.
PRIM thesis for this cash-secured put
The market-implied 1-standard-deviation range for PRIM extends from approximately $69.02 on the downside to $96.90 on the upside. A PRIM cash-secured put lets a trader earn premium while waiting to acquire PRIM 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 PRIM IV rank near 34.65% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on PRIM should anchor more to the directional view and the expected-move geometry. As a Industrials name, PRIM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PRIM-specific events.
PRIM 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. PRIM positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PRIM alongside the broader basket even when PRIM-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on PRIM carry tail risk when realized volatility exceeds the implied move; review historical PRIM earnings reactions and macro stress periods before sizing. Always rebuild the position from current PRIM chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on PRIM?
- A cash-secured put on PRIM is the cash-secured put strategy applied to PRIM (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 PRIM stock at $82.96 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PRIM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PRIM 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 PRIM cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 58.60%), the computed maximum profit is $440.00 per contract and the computed maximum loss is -$7,559.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PRIM cash-secured put?
- The breakeven for the PRIM cash-secured put priced on this page is roughly $75.60 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The PRIM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.80%; 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 PRIM?
- Cash-secured puts on PRIM earn premium while a trader waits to acquire PRIM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PRIM.
- How does current PRIM implied volatility affect this cash-secured put?
- PRIM ATM IV is at 58.60% with IV rank near 34.65%, 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.