RRR Cash-Secured Put Strategy
RRR (Red Rock Resorts, Inc.), in the Consumer Cyclical sector, (Gambling, Resorts & Casinos industry), listed on NASDAQ.
Red Rock Resorts, Inc., through its interest in Station Holdco and Station LLC, develops and operates casino and entertainment properties in the United States. It operates through two segments, Las Vegas Operations and Native American Management. The company owns and operates 9 gaming and entertainment facilities, and 10 smaller casinos in the Las Vegas regional market. In addition, it manages Graton Resort & Casino in northern California. As of December 31, 2021, it operated approximately 13,894 slot machines, 240 table games, and 3,081 hotel rooms in the Las Vegas market. The company was formerly known as Station Casinos Corp. and changed its name to Red Rock Resorts, Inc. in January 2016.
RRR (Red Rock Resorts, Inc.) trades in the Consumer Cyclical sector, specifically Gambling, Resorts & Casinos, with a market capitalization of approximately $3.02B, a trailing P/E of 15.95, a beta of 1.35 versus the broader market, a 52-week range of 44.28-68.99, average daily share volume of 946K, a public-listing history dating back to 2016, approximately 9K full-time employees. These structural characteristics shape how RRR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.35 indicates RRR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. RRR 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 RRR?
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 RRR snapshot
As of May 15, 2026, spot at $51.42, ATM IV 36.00%, IV rank 41.67%, expected move 10.32%. The cash-secured put on RRR 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 RRR specifically: RRR IV at 36.00% is mid-range versus its 1-year history, so the credit collected on a RRR cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.32% (roughly $5.31 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 RRR expiries trade a higher absolute premium for lower per-day decay. Position sizing on RRR should anchor to the underlying notional of $51.42 per share and to the trader's directional view on RRR stock.
RRR cash-secured put setup
The RRR 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 RRR near $51.42, the first option leg uses a $48.85 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RRR 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 RRR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $48.85 | N/A |
RRR 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.
RRR cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on RRR. 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 RRR
Cash-secured puts on RRR earn premium while a trader waits to acquire RRR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RRR.
RRR thesis for this cash-secured put
The market-implied 1-standard-deviation range for RRR extends from approximately $46.11 on the downside to $56.73 on the upside. A RRR cash-secured put lets a trader earn premium while waiting to acquire RRR 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 RRR IV rank near 41.67% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on RRR should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, RRR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RRR-specific events.
RRR 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. RRR positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RRR alongside the broader basket even when RRR-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on RRR carry tail risk when realized volatility exceeds the implied move; review historical RRR earnings reactions and macro stress periods before sizing. Always rebuild the position from current RRR chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on RRR?
- A cash-secured put on RRR is the cash-secured put strategy applied to RRR (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 RRR stock trading near $51.42, the strikes shown on this page are snapped to the nearest listed RRR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RRR 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 RRR cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 36.00%), 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 RRR cash-secured put?
- The breakeven for the RRR 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 RRR market-implied 1-standard-deviation expected move is approximately 10.32%; 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 RRR?
- Cash-secured puts on RRR earn premium while a trader waits to acquire RRR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RRR.
- How does current RRR implied volatility affect this cash-secured put?
- RRR ATM IV is at 36.00% with IV rank near 41.67%, 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.