SEDG Cash-Secured Put Strategy
SEDG (SolarEdge Technologies, Inc.), in the Energy sector, (Solar industry), listed on NASDAQ.
SolarEdge Technologies, Inc. (SEDG) is a company specializing in the design, development, and sale of direct current (DC) optimized inverter systems for solar photovoltaic (PV) installations globally. The company operates through five key segments: Solar, Energy Storage, e-Mobility, Critical Power, and Automation Machines. Its product portfolio encompasses inverters, power optimizers, communication devices, and smart energy management solutions, catering to residential, commercial, and smaller utility-scale solar projects. SolarEdge also provides a cloud-based monitoring platform that collects and processes data from its optimizers and inverters to oversee and manage solar PV systems. Beyond its core solar offerings, SolarEdge delivers a range of solutions including residential, commercial, and large-scale PV, energy storage and backup, electric vehicle charging, and home energy management, along with grid services. The company also extends into e-Mobility, automation machinery, lithium-ion cells and battery packs, and uninterruptible power supply (UPS) solutions, as well as developing virtual power plants to aid in grid load management and stability.
SEDG (SolarEdge Technologies, Inc.) trades in the Energy sector, specifically Solar, with a market capitalization of approximately $3.15B, a beta of 1.42 versus the broader market, a 52-week range of 19.73-81.25, average daily share volume of 3.8M, a public-listing history dating back to 2015, approximately 4K full-time employees. These structural characteristics shape how SEDG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.42 indicates SEDG 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 SEDG?
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 SEDG snapshot
As of June 30, 2026, spot at $58.48, ATM IV 101.82%, IV rank 55.06%, expected move 29.19%. The cash-secured put on SEDG 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 31-day expiry.
Why this cash-secured put structure on SEDG specifically: SEDG IV at 101.82% is mid-range versus its 1-year history, so the credit collected on a SEDG cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 29.19% (roughly $17.07 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SEDG expiries trade a higher absolute premium for lower per-day decay. Position sizing on SEDG should anchor to the underlying notional of $58.48 per share and to the trader's directional view on SEDG stock.
SEDG cash-secured put setup
The SEDG 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 SEDG near $58.48, the first option leg uses a $56.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SEDG chain at a 31-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 SEDG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $56.00 | $5.38 |
SEDG cash-secured put risk and reward
- Net Premium / Debit
- +$537.50
- Max Profit (per contract)
- $537.50
- Max Loss (per contract)
- -$5,061.50
- Breakeven(s)
- $50.63
- Risk / Reward Ratio
- 0.106
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
SEDG cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on SEDG. 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% | -$5,061.50 |
| $12.94 | -77.9% | -$3,768.59 |
| $25.87 | -55.8% | -$2,475.67 |
| $38.80 | -33.7% | -$1,182.76 |
| $51.73 | -11.5% | +$110.16 |
| $64.66 | +10.6% | +$537.50 |
| $77.58 | +32.7% | +$537.50 |
| $90.51 | +54.8% | +$537.50 |
| $103.44 | +76.9% | +$537.50 |
| $116.37 | +99.0% | +$537.50 |
When traders use cash-secured put on SEDG
Cash-secured puts on SEDG earn premium while a trader waits to acquire SEDG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SEDG.
SEDG thesis for this cash-secured put
The market-implied 1-standard-deviation range for SEDG extends from approximately $41.41 on the downside to $75.55 on the upside. A SEDG cash-secured put lets a trader earn premium while waiting to acquire SEDG 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 SEDG IV rank near 55.06% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on SEDG should anchor more to the directional view and the expected-move geometry. As a Energy name, SEDG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SEDG-specific events.
SEDG 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. SEDG positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SEDG alongside the broader basket even when SEDG-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on SEDG carry tail risk when realized volatility exceeds the implied move; review historical SEDG earnings reactions and macro stress periods before sizing. Always rebuild the position from current SEDG chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on SEDG?
- A cash-secured put on SEDG is the cash-secured put strategy applied to SEDG (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 SEDG stock trading near $58.48, the strikes shown on this page are snapped to the nearest listed SEDG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SEDG 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 SEDG cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 101.82%), the computed maximum profit is $537.50 per contract and the computed maximum loss is -$5,061.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SEDG cash-secured put?
- The breakeven for the SEDG cash-secured put priced on this page is roughly $50.63 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 SEDG market-implied 1-standard-deviation expected move is approximately 29.19%; 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 SEDG?
- Cash-secured puts on SEDG earn premium while a trader waits to acquire SEDG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SEDG.
- How does current SEDG implied volatility affect this cash-secured put?
- SEDG ATM IV is at 101.82% with IV rank near 55.06%, 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.