STAG Cash-Secured Put Strategy
STAG (STAG Industrial, Inc.), in the Real Estate sector, (REIT - Industrial industry), listed on NYSE.
STAG Industrial, Inc. (NYSE: STAG) is a real estate investment trust focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. By targeting this type of property, STAG has developed an investment strategy that helps investors find a powerful balance of income plus growth.
STAG (STAG Industrial, Inc.) trades in the Real Estate sector, specifically REIT - Industrial, with a market capitalization of approximately $7.34B, a trailing P/E of 30.03, a beta of 1.01 versus the broader market, a 52-week range of 33.72-39.99, average daily share volume of 1.3M, a public-listing history dating back to 2011, approximately 91 full-time employees. These structural characteristics shape how STAG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.01 places STAG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. STAG 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 STAG?
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 STAG snapshot
As of May 15, 2026, spot at $37.76, ATM IV 22.20%, IV rank 5.29%, expected move 6.36%. The cash-secured put on STAG 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 STAG specifically: STAG IV at 22.20% is on the cheap side of its 1-year range, which means a premium-selling STAG cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.36% (roughly $2.40 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 STAG expiries trade a higher absolute premium for lower per-day decay. Position sizing on STAG should anchor to the underlying notional of $37.76 per share and to the trader's directional view on STAG stock.
STAG cash-secured put setup
The STAG 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 STAG near $37.76, the first option leg uses a $35.87 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STAG 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 STAG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $35.87 | N/A |
STAG 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.
STAG cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on STAG. 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 STAG
Cash-secured puts on STAG earn premium while a trader waits to acquire STAG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning STAG.
STAG thesis for this cash-secured put
The market-implied 1-standard-deviation range for STAG extends from approximately $35.36 on the downside to $40.16 on the upside. A STAG cash-secured put lets a trader earn premium while waiting to acquire STAG 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 STAG IV rank near 5.29% 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 STAG at 22.20%. As a Real Estate name, STAG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STAG-specific events.
STAG 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. STAG positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STAG alongside the broader basket even when STAG-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on STAG carry tail risk when realized volatility exceeds the implied move; review historical STAG earnings reactions and macro stress periods before sizing. Always rebuild the position from current STAG chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on STAG?
- A cash-secured put on STAG is the cash-secured put strategy applied to STAG (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 STAG stock trading near $37.76, the strikes shown on this page are snapped to the nearest listed STAG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are STAG 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 STAG cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 22.20%), 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 STAG cash-secured put?
- The breakeven for the STAG 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 STAG market-implied 1-standard-deviation expected move is approximately 6.36%; 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 STAG?
- Cash-secured puts on STAG earn premium while a trader waits to acquire STAG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning STAG.
- How does current STAG implied volatility affect this cash-secured put?
- STAG ATM IV is at 22.20% with IV rank near 5.29%, 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.