RDW Cash-Secured Put Strategy
RDW (Redwire Corp), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.
Redwire Corporation provides critical space solutions and space infrastructure for government and commercial customers in the United States, Europe, and internationally. It operates in two segments Space and Defense Tech. The company offers sensors and avionics systems, including star trackers and sun sensors, which are critical for accurate navigation and control of spacecraft; camera systems; infrared, space situational awareness, and position timing and navigation payloads; It also provides software suite that enables digital engineering and generation of high-fidelity, interactive modeling and simulations of individual components, entire spacecraft, and full constellations in a cloud-based environment. In addition, the company offers microgravity payloads, radio frequency systems, antennas, spacecraft platforms and missions, and in-space manufacturing and biotech facilities, as well as field-proven uncrewed airborne system (UAS) technology. Further, it provides combat-proven autonomous systems, optical sensors, advanced optics, resilient energy solutions, and radio frequency payloads, as well as provides intelligence, surveillance, and reconnaissance capabilities for customers including the U.S. Department of War, U.S.
RDW (Redwire Corp) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $3.22B, a beta of 3.06 versus the broader market, a 52-week range of 4.87-26.64, average daily share volume of 33.1M, a public-listing history dating back to 2021, approximately 1K full-time employees. These structural characteristics shape how RDW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.06 indicates RDW has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a cash-secured put on RDW?
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.
RDW snapshot
As of August 14, 2026, spot at $13.70, ATM IV 89.70%, IV rank 23.54%, expected move 25.72%. The cash-secured put on RDW 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 28-day expiry.
Why this cash-secured put structure on RDW specifically: RDW IV at 89.70% is on the cheap side of its 1-year range, which means a premium-selling RDW cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 25.72% (roughly $3.52 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RDW expiries trade a higher absolute premium for lower per-day decay. Position sizing on RDW should anchor to the underlying notional of $13.70 per share and to the trader's directional view on RDW stock.
RDW cash-secured put setup
The RDW 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 RDW at $13.70 on that close, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RDW chain at a 28-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 RDW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $13.00 | $0.98 |
RDW cash-secured put risk and reward
- Net Premium / Debit
- +$97.50
- Max Profit (per contract)
- $97.50
- Max Loss (per contract)
- -$1,201.50
- Breakeven(s)
- $12.03
- Risk / Reward Ratio
- 0.081
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
RDW cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on RDW. 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 | -99.9% | -$1,201.50 |
| $3.04 | -77.8% | -$898.70 |
| $6.07 | -55.7% | -$595.89 |
| $9.09 | -33.6% | -$293.09 |
| $12.12 | -11.5% | +$9.72 |
| $15.15 | +10.6% | +$97.50 |
| $18.18 | +32.7% | +$97.50 |
| $21.21 | +54.8% | +$97.50 |
| $24.23 | +76.9% | +$97.50 |
| $27.26 | +99.0% | +$97.50 |
When traders use cash-secured put on RDW
Cash-secured puts on RDW earn premium while a trader waits to acquire RDW stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RDW.
RDW thesis for this cash-secured put
The market-implied 1-standard-deviation range for RDW extends from approximately $10.18 on the downside to $17.22 on the upside. A RDW cash-secured put lets a trader earn premium while waiting to acquire RDW 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 RDW IV rank near 23.54% 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 RDW at 89.70%. As a Industrials name, RDW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RDW-specific events.
RDW 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. RDW positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RDW alongside the broader basket even when RDW-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on RDW carry tail risk when realized volatility exceeds the implied move; review historical RDW earnings reactions and macro stress periods before sizing. Always rebuild the position from current RDW chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on RDW?
- A cash-secured put on RDW is the cash-secured put strategy applied to RDW (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 RDW stock at $13.70 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed RDW chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are RDW 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 RDW cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 89.70%), the computed maximum profit is $97.50 per contract and the computed maximum loss is -$1,201.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RDW cash-secured put?
- The breakeven for the RDW cash-secured put priced on this page is roughly $12.03 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 RDW market-implied 1-standard-deviation expected move in the same options snapshot is approximately 25.72%; 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 RDW?
- Cash-secured puts on RDW earn premium while a trader waits to acquire RDW stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RDW.
- How does current RDW implied volatility affect this cash-secured put?
- RDW ATM IV is at 89.70% with IV rank near 23.54%, 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.