REX Cash-Secured Put Strategy
REX (REX American Resources Corporation), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NYSE.
REX American Resources Corporation, together with its subsidiaries, produces and sells ethanol in the United States. The company also offers corn, distillers grains, non-food grade corn oil, gasoline, and natural gas. In addition, the company provides dry distillers grains with solubles, which is used as a protein in animal feed. The company was formerly known as REX Stores Corporation and changed its name to REX American Resources Corporation in 2010. REX American Resources Corporation was founded in 1980 and is headquartered in Dayton, Ohio.
REX (REX American Resources Corporation) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $1.60B, a trailing P/E of 19.38, a beta of 0.63 versus the broader market, a 52-week range of 19.44-53.36, average daily share volume of 207K, a public-listing history dating back to 1984, approximately 122 full-time employees. These structural characteristics shape how REX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.63 indicates REX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a cash-secured put on REX?
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 REX snapshot
As of May 15, 2026, spot at $50.36, ATM IV 51.80%, IV rank 52.48%, expected move 14.85%. The cash-secured put on REX 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 REX specifically: REX IV at 51.80% is mid-range versus its 1-year history, so the credit collected on a REX cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.85% (roughly $7.48 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 REX expiries trade a higher absolute premium for lower per-day decay. Position sizing on REX should anchor to the underlying notional of $50.36 per share and to the trader's directional view on REX stock.
REX cash-secured put setup
The REX 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 REX near $50.36, the first option leg uses a $47.84 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REX 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 REX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $47.84 | N/A |
REX 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.
REX cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on REX. 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 REX
Cash-secured puts on REX earn premium while a trader waits to acquire REX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning REX.
REX thesis for this cash-secured put
The market-implied 1-standard-deviation range for REX extends from approximately $42.88 on the downside to $57.84 on the upside. A REX cash-secured put lets a trader earn premium while waiting to acquire REX 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 REX IV rank near 52.48% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on REX should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, REX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REX-specific events.
REX 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. REX positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move REX alongside the broader basket even when REX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on REX carry tail risk when realized volatility exceeds the implied move; review historical REX earnings reactions and macro stress periods before sizing. Always rebuild the position from current REX chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on REX?
- A cash-secured put on REX is the cash-secured put strategy applied to REX (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 REX stock trading near $50.36, the strikes shown on this page are snapped to the nearest listed REX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are REX 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 REX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 51.80%), 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 REX cash-secured put?
- The breakeven for the REX 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 REX market-implied 1-standard-deviation expected move is approximately 14.85%; 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 REX?
- Cash-secured puts on REX earn premium while a trader waits to acquire REX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning REX.
- How does current REX implied volatility affect this cash-secured put?
- REX ATM IV is at 51.80% with IV rank near 52.48%, 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.