SCCO Cash-Secured Put Strategy
SCCO (Southern Copper Corporation), in the Basic Materials sector, (Copper industry), listed on NYSE.
Southern Copper Corporation engages in mining, exploring, smelting, and refining copper and other minerals in Peru, Mexico, Argentina, Ecuador, and Chile. The company is involved in the mining, milling, and flotation of copper ore to produce copper and molybdenum concentrates; smelting of copper concentrates to produce blister and anode copper; refining of anode copper to produce copper cathodes; production of molybdenum concentrate and sulfuric acid; production of refined silver, gold, and other materials; and mining and processing of zinc and lead. It operates the Toquepala and Cuajone open-pit mines, and a smelter and refinery in Peru; and La Caridad, an open-pit copper mine, as well as a copper ore concentrator, a SX-EW plant, a smelter, refinery, and a rod plant in Mexico. The company also operates Buenavista, an open-pit copper mine, as well as two copper concentrators and two operating SX-EW plants in Mexico. In addition, it operates five underground mines that produce zinc, lead, copper, silver, and gold; a coal mine that produces coal and coke; and a zinc refinery. The company has interests in 82,134 hectares of exploration concessions in Peru; 493,533 hectares of exploration concessions in Mexico; 246,346 hectares of exploration concessions in Argentina; 29,888 hectares of exploration concessions in Chile; and 7,299 hectares of exploration concessions in Ecuador.
SCCO (Southern Copper Corporation) trades in the Basic Materials sector, specifically Copper, with a market capitalization of approximately $158.51B, a trailing P/E of 31.72, a beta of 1.08 versus the broader market, a 52-week range of 85.33004-221.66832, average daily share volume of 1.7M, a public-listing history dating back to 1996, approximately 16K full-time employees. These structural characteristics shape how SCCO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.08 places SCCO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SCCO 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 SCCO?
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 SCCO snapshot
As of May 15, 2026, spot at $177.88, ATM IV 55.51%, IV rank 67.99%, expected move 15.91%. The cash-secured put on SCCO 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 SCCO specifically: SCCO IV at 55.51% is mid-range versus its 1-year history, so the credit collected on a SCCO cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 15.91% (roughly $28.31 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 SCCO expiries trade a higher absolute premium for lower per-day decay. Position sizing on SCCO should anchor to the underlying notional of $177.88 per share and to the trader's directional view on SCCO stock.
SCCO cash-secured put setup
The SCCO 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 SCCO near $177.88, the first option leg uses a $170.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SCCO 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 SCCO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $170.00 | $7.20 |
SCCO cash-secured put risk and reward
- Net Premium / Debit
- +$720.00
- Max Profit (per contract)
- $720.00
- Max Loss (per contract)
- -$16,279.00
- Breakeven(s)
- $162.80
- Risk / Reward Ratio
- 0.044
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
SCCO cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on SCCO. 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% | -$16,279.00 |
| $39.34 | -77.9% | -$12,346.09 |
| $78.67 | -55.8% | -$8,413.17 |
| $118.00 | -33.7% | -$4,480.26 |
| $157.33 | -11.6% | -$547.34 |
| $196.66 | +10.6% | +$720.00 |
| $235.98 | +32.7% | +$720.00 |
| $275.31 | +54.8% | +$720.00 |
| $314.64 | +76.9% | +$720.00 |
| $353.97 | +99.0% | +$720.00 |
When traders use cash-secured put on SCCO
Cash-secured puts on SCCO earn premium while a trader waits to acquire SCCO stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SCCO.
SCCO thesis for this cash-secured put
The market-implied 1-standard-deviation range for SCCO extends from approximately $149.57 on the downside to $206.19 on the upside. A SCCO cash-secured put lets a trader earn premium while waiting to acquire SCCO 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 SCCO IV rank near 67.99% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on SCCO should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, SCCO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SCCO-specific events.
SCCO 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. SCCO positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SCCO alongside the broader basket even when SCCO-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on SCCO carry tail risk when realized volatility exceeds the implied move; review historical SCCO earnings reactions and macro stress periods before sizing. Always rebuild the position from current SCCO chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on SCCO?
- A cash-secured put on SCCO is the cash-secured put strategy applied to SCCO (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 SCCO stock trading near $177.88, the strikes shown on this page are snapped to the nearest listed SCCO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SCCO 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 SCCO cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 55.51%), the computed maximum profit is $720.00 per contract and the computed maximum loss is -$16,279.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SCCO cash-secured put?
- The breakeven for the SCCO cash-secured put priced on this page is roughly $162.80 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 SCCO market-implied 1-standard-deviation expected move is approximately 15.91%; 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 SCCO?
- Cash-secured puts on SCCO earn premium while a trader waits to acquire SCCO stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SCCO.
- How does current SCCO implied volatility affect this cash-secured put?
- SCCO ATM IV is at 55.51% with IV rank near 67.99%, 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.