SJT Cash-Secured Put Strategy
SJT (San Juan Basin Royalty Trust), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.
San Juan Basin Royalty Trust operates as an express trust in Texas. The company has a 75% net overriding royalty interest carved out of Southland's oil and natural gas interests (the Subject Interests) in properties located in the San Juan Basin in northwestern New Mexico. The Subject Interests consist of working interests, royalty interests, overriding royalty interests, and other contractual rights in 119,000 net producing acres in San Juan, Rio Arriba, and Sandoval Counties of northwestern New Mexico, as well as 1,140.0 net wells. BBVA USA serves as the trustee of the San Juan Basin Royalty Trust. The company was founded in 1980 and is based in Houston, Texas.
SJT (San Juan Basin Royalty Trust) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $200.0M, a beta of 0.58 versus the broader market, a 52-week range of 4.1-7.22, average daily share volume of 181K, a public-listing history dating back to 1980. These structural characteristics shape how SJT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.58 indicates SJT has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SJT 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 SJT?
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 SJT snapshot
As of May 15, 2026, spot at $4.19, ATM IV 126.50%, IV rank 62.95%, expected move 36.27%. The cash-secured put on SJT 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 SJT specifically: SJT IV at 126.50% is mid-range versus its 1-year history, so the credit collected on a SJT cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 36.27% (roughly $1.52 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 SJT expiries trade a higher absolute premium for lower per-day decay. Position sizing on SJT should anchor to the underlying notional of $4.19 per share and to the trader's directional view on SJT stock.
SJT cash-secured put setup
The SJT 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 SJT near $4.19, the first option leg uses a $3.98 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SJT 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 SJT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $3.98 | N/A |
SJT 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.
SJT cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on SJT. 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 SJT
Cash-secured puts on SJT earn premium while a trader waits to acquire SJT stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SJT.
SJT thesis for this cash-secured put
The market-implied 1-standard-deviation range for SJT extends from approximately $2.67 on the downside to $5.71 on the upside. A SJT cash-secured put lets a trader earn premium while waiting to acquire SJT 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 SJT IV rank near 62.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on SJT should anchor more to the directional view and the expected-move geometry. As a Energy name, SJT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SJT-specific events.
SJT 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. SJT positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SJT alongside the broader basket even when SJT-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on SJT carry tail risk when realized volatility exceeds the implied move; review historical SJT earnings reactions and macro stress periods before sizing. Always rebuild the position from current SJT chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on SJT?
- A cash-secured put on SJT is the cash-secured put strategy applied to SJT (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 SJT stock trading near $4.19, the strikes shown on this page are snapped to the nearest listed SJT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SJT 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 SJT cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 126.50%), 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 SJT cash-secured put?
- The breakeven for the SJT 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 SJT market-implied 1-standard-deviation expected move is approximately 36.27%; 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 SJT?
- Cash-secured puts on SJT earn premium while a trader waits to acquire SJT stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SJT.
- How does current SJT implied volatility affect this cash-secured put?
- SJT ATM IV is at 126.50% with IV rank near 62.95%, 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.