How are STNG 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 STNG cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 35.70%), the computed maximum profit is $295.00 per contract and the computed maximum loss is -$7,204.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a STNG cash-secured put?

The breakeven for the STNG cash-secured put priced on this page is roughly $72.05 at expiration, derived from the August 14, 2026 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 STNG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current STNG implied volatility affect this cash-secured put?

STNG ATM IV is at 35.70% with IV rank near 21.10%, 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.

STNG Cash-Secured Put Strategy

STNG (Scorpio Tankers Inc.), in the Industrials sector, (Marine Shipping industry), listed on NYSE.

Scorpio Tankers Inc., together with its subsidiaries, engages in the seaborne transportation of crude oil and refined petroleum products worldwide. As of March 19, 2026, its fleet consisted of 90 wholly owned tankers, including 34 LR2, 42MR, and 14 Handymax. Scorpio Tankers Inc. was incorporated in 2009 and is headquartered in Monaco.

STNG (Scorpio Tankers Inc.) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $3.81B, a trailing P/E of 4.27, a beta of -0.25 versus the broader market, a 52-week range of 44.38-87.39, average daily share volume of 960K, a public-listing history dating back to 2010, approximately 24 full-time employees. These structural characteristics shape how STNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.25 indicates STNG 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 4.27 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. STNG 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 STNG?

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.

STNG snapshot

As of August 14, 2026, spot at $79.25, ATM IV 35.70%, IV rank 21.10%, expected move 10.23%. The cash-secured put on STNG below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 63-day expiry.

Why this cash-secured put structure on STNG specifically: STNG IV at 35.70% is on the cheap side of its 1-year range, which means a premium-selling STNG cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.23% (roughly $8.11 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated STNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on STNG should anchor to the underlying notional of $79.25 per share and to the trader's directional view on STNG stock.

STNG cash-secured put setup

The STNG cash-secured put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With STNG at $79.25 on that close, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STNG chain at a 63-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 STNG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$75.00	$2.95

STNG cash-secured put risk and reward

Net Premium / Debit: +$295.00
Max Profit (per contract): $295.00
Max Loss (per contract): -$7,204.00
Breakeven(s): $72.05
Risk / Reward Ratio: 0.041

Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.

STNG cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on STNG. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$7,204.00
$17.53	-77.9%	-$5,451.85
$35.05	-55.8%	-$3,699.70
$52.57	-33.7%	-$1,947.55
$70.10	-11.6%	-$195.40
$87.62	+10.6%	+$295.00
$105.14	+32.7%	+$295.00
$122.66	+54.8%	+$295.00
$140.18	+76.9%	+$295.00
$157.70	+99.0%	+$295.00

When traders use cash-secured put on STNG

Cash-secured puts on STNG earn premium while a trader waits to acquire STNG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning STNG.

STNG thesis for this cash-secured put

The market-implied 1-standard-deviation range for STNG extends from approximately $71.14 on the downside to $87.36 on the upside. A STNG cash-secured put lets a trader earn premium while waiting to acquire STNG 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 STNG IV rank near 21.10% 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 STNG at 35.70%. As a Industrials name, STNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STNG-specific events.

STNG 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. STNG positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STNG alongside the broader basket even when STNG-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on STNG carry tail risk when realized volatility exceeds the implied move; review historical STNG earnings reactions and macro stress periods before sizing. Always rebuild the position from current STNG chain quotes before placing a trade.

Frequently asked questions

What is a cash-secured put on STNG?: A cash-secured put on STNG is the cash-secured put strategy applied to STNG (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 STNG stock at $79.25 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed STNG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are STNG 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 STNG cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 35.70%), the computed maximum profit is $295.00 per contract and the computed maximum loss is -$7,204.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a STNG cash-secured put?: The breakeven for the STNG cash-secured put priced on this page is roughly $72.05 at expiration, derived from the August 14, 2026 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 STNG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.23%; 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 STNG?: Cash-secured puts on STNG earn premium while a trader waits to acquire STNG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning STNG.
How does current STNG implied volatility affect this cash-secured put?: STNG ATM IV is at 35.70% with IV rank near 21.10%, 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.