SRI Cash-Secured Put Strategy
SRI (Stoneridge, Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NYSE.
Stoneridge, Inc. engineers and manufactures specialized electrical and electronic components, modules, and integrated systems for a broad spectrum of vehicle markets, including automotive, commercial, off-highway, motorcycle, and agricultural sectors, operating across North America, South America, Europe, and other international territories. The company's operations are divided into three core segments: Control Devices, Electronics, and Stoneridge Brazil. The Control Devices segment delivers critical parts such as sensors, switches, actuators, and connectors, designed to monitor, measure, or activate specific vehicle functions. The Electronics segment focuses on developing and producing driver information systems, camera-based vision technologies, connectivity solutions, and compliance products. These offerings gather, store, and display vital vehicle data, including speed, pressure, maintenance information, trip logs, operator performance metrics, temperature, distance covered, and driver alerts pertaining to vehicle operation. Additionally, this segment creates electronic control units (ECUs) that manage, coordinate, supervise, and guide the overall electrical system within a vehicle.
SRI (Stoneridge, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $195.4M, a beta of 1.89 versus the broader market, a 52-week range of 4.6-9.71, average daily share volume of 232K, a public-listing history dating back to 1997, approximately 4K full-time employees. These structural characteristics shape how SRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.89 indicates SRI 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 SRI?
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.
SRI snapshot
As of August 14, 2026, spot at $7.13, ATM IV 72.70%, IV rank 25.67%, expected move 20.84%. The cash-secured put on SRI below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this cash-secured put structure on SRI specifically: SRI IV at 72.70% is on the cheap side of its 1-year range, which means a premium-selling SRI cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 20.84% (roughly $1.49 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on SRI should anchor to the underlying notional of $7.13 per share and to the trader's directional view on SRI stock.
SRI cash-secured put setup
The SRI 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 SRI at $7.13 on that close, the first option leg uses a $6.77 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SRI chain at a 35-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 SRI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $6.77 | N/A |
SRI 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.
SRI cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on SRI. 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 SRI
Cash-secured puts on SRI earn premium while a trader waits to acquire SRI stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SRI.
SRI thesis for this cash-secured put
The market-implied 1-standard-deviation range for SRI extends from approximately $5.64 on the downside to $8.62 on the upside. A SRI cash-secured put lets a trader earn premium while waiting to acquire SRI 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 SRI IV rank near 25.67% 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 SRI at 72.70%. As a Consumer Cyclical name, SRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SRI-specific events.
SRI 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. SRI positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SRI alongside the broader basket even when SRI-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on SRI carry tail risk when realized volatility exceeds the implied move; review historical SRI earnings reactions and macro stress periods before sizing. Always rebuild the position from current SRI chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on SRI?
- A cash-secured put on SRI is the cash-secured put strategy applied to SRI (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 SRI stock at $7.13 on the most recent close, the strikes shown on this page are snapped to the nearest listed SRI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are SRI 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 SRI cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 72.70%), 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 SRI cash-secured put?
- The breakeven for the SRI cash-secured put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The SRI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 20.84%; 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 SRI?
- Cash-secured puts on SRI earn premium while a trader waits to acquire SRI stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SRI.
- How does current SRI implied volatility affect this cash-secured put?
- SRI ATM IV is at 72.70% with IV rank near 25.67%, 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.