SRCE Cash-Secured Put Strategy
SRCE (1st Source Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients. Its consumer banking services include checking and savings accounts; certificates of deposit; individual retirement accounts; online and mobile banking products; consumer loans, real estate mortgage loans, and home equity lines of credit; and financial planning, financial literacy, and other consultative services, as well as debit and credit cards. The company also offers commercial, small business, agricultural, and real estate loans for general corporate purposes, including financing for industrial and commercial properties, equipment, inventories, accounts receivables, and renewable energy and acquisition financing; and commercial leasing, treasury management, and retirement planning services. In addition, it provides trust, investment, agency, and custodial services comprising administration of estates and personal trusts, as well as management of investment accounts for individuals, employee benefit plans, and charitable foundations. Further, the company offers equipment loan and lease products for construction equipment, new and pre-owned aircraft, auto and light trucks, and medium and heavy duty trucks; and finances construction equipment, aircrafts, medium and heavy duty trucks, step vans, vocational work trucks, motor coaches, shuttle buses, funeral cars, automobiles, and other equipment. Additionally, it provides corporate and personal property, casualty, and individual and group health and life insurance products and services.
SRCE (1st Source Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.72B, a trailing P/E of 10.81, a beta of 0.59 versus the broader market, a 52-week range of 56.89-76.44, average daily share volume of 145K, a public-listing history dating back to 1983, approximately 1K full-time employees. These structural characteristics shape how SRCE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.59 indicates SRCE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 10.81 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. SRCE 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 SRCE?
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 SRCE snapshot
As of May 15, 2026, spot at $71.22, ATM IV 29.20%, IV rank 3.75%, expected move 8.37%. The cash-secured put on SRCE 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 SRCE specifically: SRCE IV at 29.20% is on the cheap side of its 1-year range, which means a premium-selling SRCE cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.37% (roughly $5.96 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 SRCE expiries trade a higher absolute premium for lower per-day decay. Position sizing on SRCE should anchor to the underlying notional of $71.22 per share and to the trader's directional view on SRCE stock.
SRCE cash-secured put setup
The SRCE 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 SRCE near $71.22, the first option leg uses a $67.66 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SRCE 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 SRCE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $67.66 | N/A |
SRCE 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.
SRCE cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on SRCE. 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 SRCE
Cash-secured puts on SRCE earn premium while a trader waits to acquire SRCE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SRCE.
SRCE thesis for this cash-secured put
The market-implied 1-standard-deviation range for SRCE extends from approximately $65.26 on the downside to $77.18 on the upside. A SRCE cash-secured put lets a trader earn premium while waiting to acquire SRCE 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 SRCE IV rank near 3.75% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on SRCE at 29.20%. As a Financial Services name, SRCE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SRCE-specific events.
SRCE 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. SRCE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SRCE alongside the broader basket even when SRCE-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on SRCE carry tail risk when realized volatility exceeds the implied move; review historical SRCE earnings reactions and macro stress periods before sizing. Always rebuild the position from current SRCE chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on SRCE?
- A cash-secured put on SRCE is the cash-secured put strategy applied to SRCE (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 SRCE stock trading near $71.22, the strikes shown on this page are snapped to the nearest listed SRCE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SRCE 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 SRCE cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 29.20%), 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 SRCE cash-secured put?
- The breakeven for the SRCE 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 SRCE market-implied 1-standard-deviation expected move is approximately 8.37%; 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 SRCE?
- Cash-secured puts on SRCE earn premium while a trader waits to acquire SRCE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SRCE.
- How does current SRCE implied volatility affect this cash-secured put?
- SRCE ATM IV is at 29.20% with IV rank near 3.75%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.