RACE Cash-Secured Put Strategy
RACE (Ferrari N.V.), in the Consumer Cyclical sector, (Auto - Manufacturers industry), listed on NYSE.
Ferrari N.V. is a renowned automotive manufacturer primarily engaged in the creation, engineering, production, and sale of an exclusive range of high-performance luxury automobiles. Its extensive vehicle lineup features diverse models, including traditional sports cars, Grand Tourers (GTs), specialized series editions, ultra-exclusive limited-edition hypercars, bespoke one-off vehicles, track-specific designs, and its distinctive Icona series. Beyond car manufacturing, the company also supplies motorsport vehicles, essential components like spare parts and engines, and delivers comprehensive after-sales services such as vehicle repair, maintenance, and restoration. Expanding its brand influence, Ferrari N.V. strategically licenses its iconic marque to various producers and retailers of upscale lifestyle merchandise. This also extends to prominent leisure destinations, including the Ferrari World theme park in Abu Dhabi, UAE, and Ferrari Land Portaventura in Europe. The company further diversifies its operations by offering direct and indirect financing and leasing solutions to both individual customers and dealership partners.
RACE (Ferrari N.V.) trades in the Consumer Cyclical sector, specifically Auto - Manufacturers, with a market capitalization of approximately $65.02B, a trailing P/E of 35.65, a beta of 0.60 versus the broader market, a 52-week range of 312.51-519.1, average daily share volume of 640K, a public-listing history dating back to 2015, approximately 5K full-time employees. These structural characteristics shape how RACE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.60 indicates RACE 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 35.65 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. RACE 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 RACE?
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 RACE snapshot
As of June 30, 2026, spot at $372.19, ATM IV 37.68%, IV rank 48.58%, expected move 10.80%. The cash-secured put on RACE 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 31-day expiry.
Why this cash-secured put structure on RACE specifically: RACE IV at 37.68% is mid-range versus its 1-year history, so the credit collected on a RACE cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.80% (roughly $40.21 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RACE expiries trade a higher absolute premium for lower per-day decay. Position sizing on RACE should anchor to the underlying notional of $372.19 per share and to the trader's directional view on RACE stock.
RACE cash-secured put setup
The RACE 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 RACE near $372.19, the first option leg uses a $355.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RACE chain at a 31-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 RACE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $355.00 | $9.15 |
RACE cash-secured put risk and reward
- Net Premium / Debit
- +$915.00
- Max Profit (per contract)
- $915.00
- Max Loss (per contract)
- -$34,584.00
- Breakeven(s)
- $345.85
- Risk / Reward Ratio
- 0.026
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
RACE cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on RACE. 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% | -$34,584.00 |
| $82.30 | -77.9% | -$26,354.78 |
| $164.59 | -55.8% | -$18,125.57 |
| $246.89 | -33.7% | -$9,896.35 |
| $329.18 | -11.6% | -$1,667.14 |
| $411.47 | +10.6% | +$915.00 |
| $493.76 | +32.7% | +$915.00 |
| $576.06 | +54.8% | +$915.00 |
| $658.35 | +76.9% | +$915.00 |
| $740.64 | +99.0% | +$915.00 |
When traders use cash-secured put on RACE
Cash-secured puts on RACE earn premium while a trader waits to acquire RACE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RACE.
RACE thesis for this cash-secured put
The market-implied 1-standard-deviation range for RACE extends from approximately $331.98 on the downside to $412.40 on the upside. A RACE cash-secured put lets a trader earn premium while waiting to acquire RACE 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 RACE IV rank near 48.58% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on RACE should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, RACE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RACE-specific events.
RACE 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. RACE positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RACE alongside the broader basket even when RACE-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on RACE carry tail risk when realized volatility exceeds the implied move; review historical RACE earnings reactions and macro stress periods before sizing. Always rebuild the position from current RACE chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on RACE?
- A cash-secured put on RACE is the cash-secured put strategy applied to RACE (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 RACE stock trading near $372.19, the strikes shown on this page are snapped to the nearest listed RACE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RACE 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 RACE cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 37.68%), the computed maximum profit is $915.00 per contract and the computed maximum loss is -$34,584.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RACE cash-secured put?
- The breakeven for the RACE cash-secured put priced on this page is roughly $345.85 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 RACE market-implied 1-standard-deviation expected move is approximately 10.80%; 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 RACE?
- Cash-secured puts on RACE earn premium while a trader waits to acquire RACE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RACE.
- How does current RACE implied volatility affect this cash-secured put?
- RACE ATM IV is at 37.68% with IV rank near 48.58%, 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.