How are ROST 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 ROST cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 38.17%), the computed maximum profit is $425.00 per contract and the computed maximum loss is -$19,574.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ROST cash-secured put?

The breakeven for the ROST cash-secured put priced on this page is roughly $195.75 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 ROST market-implied 1-standard-deviation expected move is approximately 10.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ROST implied volatility affect this cash-secured put?

ROST ATM IV is at 38.17% with IV rank near 99.86%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

ROST Cash-Secured Put Strategy

ROST (Ross Stores, Inc.), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NASDAQ.

Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names. Its stores primarily offer apparel, accessories, footwear, and home fashions. The company's Ross Dress for Less stores sell its products at department and specialty stores primarily to middle income households; and dd's DISCOUNTS stores sell its products at department and discount stores for households with moderate income. As of July 5, 2022, it operated approximately 1,950 stores under the Ross Dress for Less and dd's DISCOUNTS name in 40 states, the District of Columbia, and Guam. Ross Stores, Inc. was incorporated in 1957 and is headquartered in Dublin, California.

ROST (Ross Stores, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $68.49B, a trailing P/E of 31.56, a beta of 0.88 versus the broader market, a 52-week range of 124.49-231.16, average daily share volume of 2.6M, a public-listing history dating back to 1985, approximately 107K full-time employees. These structural characteristics shape how ROST stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.88 places ROST roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ROST 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 ROST?

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 ROST snapshot

As of May 15, 2026, spot at $212.45, ATM IV 38.17%, IV rank 99.86%, expected move 10.94%. The cash-secured put on ROST 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 ROST specifically: ROST IV at 38.17% is rich versus its 1-year range, which favors premium-selling structures like a ROST cash-secured put, with a market-implied 1-standard-deviation move of approximately 10.94% (roughly $23.25 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 ROST expiries trade a higher absolute premium for lower per-day decay. Position sizing on ROST should anchor to the underlying notional of $212.45 per share and to the trader's directional view on ROST stock.

ROST cash-secured put setup

The ROST 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 ROST near $212.45, the first option leg uses a $200.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ROST 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 ROST shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$200.00	$4.25

ROST cash-secured put risk and reward

Net Premium / Debit: +$425.00
Max Profit (per contract): $425.00
Max Loss (per contract): -$19,574.00
Breakeven(s): $195.75
Risk / Reward Ratio: 0.022

Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.

ROST cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ROST. 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%	-$19,574.00
$46.98	-77.9%	-$14,876.72
$93.96	-55.8%	-$10,179.45
$140.93	-33.7%	-$5,482.17
$187.90	-11.6%	-$784.89
$234.87	+10.6%	+$425.00
$281.85	+32.7%	+$425.00
$328.82	+54.8%	+$425.00
$375.79	+76.9%	+$425.00
$422.76	+99.0%	+$425.00

When traders use cash-secured put on ROST

Cash-secured puts on ROST earn premium while a trader waits to acquire ROST stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ROST.

ROST thesis for this cash-secured put

The market-implied 1-standard-deviation range for ROST extends from approximately $189.20 on the downside to $235.70 on the upside. A ROST cash-secured put lets a trader earn premium while waiting to acquire ROST 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 ROST IV rank near 99.86% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on ROST at 38.17%. As a Consumer Cyclical name, ROST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ROST-specific events.

ROST 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. ROST positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ROST alongside the broader basket even when ROST-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ROST carry tail risk when realized volatility exceeds the implied move; review historical ROST earnings reactions and macro stress periods before sizing. Always rebuild the position from current ROST chain quotes before placing a trade.

Frequently asked questions

What is a cash-secured put on ROST?: A cash-secured put on ROST is the cash-secured put strategy applied to ROST (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 ROST stock trading near $212.45, the strikes shown on this page are snapped to the nearest listed ROST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ROST 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 ROST cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 38.17%), the computed maximum profit is $425.00 per contract and the computed maximum loss is -$19,574.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ROST cash-secured put?: The breakeven for the ROST cash-secured put priced on this page is roughly $195.75 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 ROST market-implied 1-standard-deviation expected move is approximately 10.94%; 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 ROST?: Cash-secured puts on ROST earn premium while a trader waits to acquire ROST stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ROST.
How does current ROST implied volatility affect this cash-secured put?: ROST ATM IV is at 38.17% with IV rank near 99.86%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.