RIG Cash-Secured Put Strategy
RIG (Transocean Ltd.), in the Energy sector, (Oil & Gas Drilling industry), listed on NYSE.
Transocean Ltd., together with its subsidiaries, provides offshore contract drilling services for oil and gas wells worldwide. It contracts its mobile offshore drilling rigs, related equipment, and work crews to drill oil and gas wells. As of February 14, 2022, the company had partial ownership interests in and operated a fleet of 37 mobile offshore drilling units, including 27 ultra-deep water and 10 harsh environment floaters. It serves integrated energy companies, government-owned or government-controlled oil companies, and other independent energy companies. The company was founded in 1926 and is based in Steinhausen, Switzerland.
RIG (Transocean Ltd.) trades in the Energy sector, specifically Oil & Gas Drilling, with a market capitalization of approximately $5.98B, a beta of 1.34 versus the broader market, a 52-week range of 2.34-7.14, average daily share volume of 40.7M, a public-listing history dating back to 1993, approximately 5K full-time employees. These structural characteristics shape how RIG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.34 indicates RIG 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 RIG?
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 RIG snapshot
As of May 15, 2026, spot at $7.03, ATM IV 54.21%, IV rank 15.62%, expected move 15.54%. The cash-secured put on RIG 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 28-day expiry.
Why this cash-secured put structure on RIG specifically: RIG IV at 54.21% is on the cheap side of its 1-year range, which means a premium-selling RIG cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 15.54% (roughly $1.09 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 RIG expiries trade a higher absolute premium for lower per-day decay. Position sizing on RIG should anchor to the underlying notional of $7.03 per share and to the trader's directional view on RIG stock.
RIG cash-secured put setup
The RIG 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 RIG near $7.03, the first option leg uses a $6.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RIG 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 RIG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $6.50 | $0.21 |
RIG cash-secured put risk and reward
- Net Premium / Debit
- +$21.00
- Max Profit (per contract)
- $21.00
- Max Loss (per contract)
- -$628.00
- Breakeven(s)
- $6.29
- Risk / Reward Ratio
- 0.033
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
RIG cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on RIG. 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% | -$628.00 |
| $1.56 | -77.8% | -$472.67 |
| $3.12 | -55.7% | -$317.35 |
| $4.67 | -33.6% | -$162.02 |
| $6.22 | -11.5% | -$6.69 |
| $7.78 | +10.6% | +$21.00 |
| $9.33 | +32.7% | +$21.00 |
| $10.88 | +54.8% | +$21.00 |
| $12.44 | +76.9% | +$21.00 |
| $13.99 | +99.0% | +$21.00 |
When traders use cash-secured put on RIG
Cash-secured puts on RIG earn premium while a trader waits to acquire RIG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RIG.
RIG thesis for this cash-secured put
The market-implied 1-standard-deviation range for RIG extends from approximately $5.94 on the downside to $8.12 on the upside. A RIG cash-secured put lets a trader earn premium while waiting to acquire RIG 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 RIG IV rank near 15.62% 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 RIG at 54.21%. As a Energy name, RIG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RIG-specific events.
RIG 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. RIG positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RIG alongside the broader basket even when RIG-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on RIG carry tail risk when realized volatility exceeds the implied move; review historical RIG earnings reactions and macro stress periods before sizing. Always rebuild the position from current RIG chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on RIG?
- A cash-secured put on RIG is the cash-secured put strategy applied to RIG (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 RIG stock trading near $7.03, the strikes shown on this page are snapped to the nearest listed RIG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RIG 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 RIG cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 54.21%), the computed maximum profit is $21.00 per contract and the computed maximum loss is -$628.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RIG cash-secured put?
- The breakeven for the RIG cash-secured put priced on this page is roughly $6.29 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 RIG market-implied 1-standard-deviation expected move is approximately 15.54%; 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 RIG?
- Cash-secured puts on RIG earn premium while a trader waits to acquire RIG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RIG.
- How does current RIG implied volatility affect this cash-secured put?
- RIG ATM IV is at 54.21% with IV rank near 15.62%, 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.