SWKS Cash-Secured Put Strategy
SWKS (Skyworks Solutions, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Skyworks Solutions, Inc., together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products, including intellectual property in the United States, China, South Korea, Taiwan, Europe, the Middle East, Africa, and rest of Asia-Pacific. Its product portfolio includes amplifiers, antenna tuners, attenuators, automotive tuners and digital radios, circulators/isolators, DC/DC converters, demodulators, detectors, diodes, wireless analog system on chip products, directional couplers, diversity receive modules, filters, front-end modules, hybrids, light emitting diode drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase locked loops, phase shifters, power dividers/combiners, receivers, switches, synthesizers, timing devices, technical ceramics, voltage controlled oscillators/synthesizers, and voltage regulators. The company provides its products for use in the aerospace, automotive, broadband, cellular infrastructure, connected home, entertainment and gaming, industrial, medical, military, smartphone, tablet, and wearable markets. It sells its products through direct sales force, electronic component distributors, and independent sales representatives. The company was incorporated in 1962 and is headquartered in Irvine, California.
SWKS (Skyworks Solutions, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $10.25B, a trailing P/E of 28.35, a beta of 1.48 versus the broader market, a 52-week range of 51.93-90.9, average daily share volume of 3.6M, a public-listing history dating back to 1984, approximately 10K full-time employees. These structural characteristics shape how SWKS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.48 indicates SWKS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. SWKS 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 SWKS?
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 SWKS snapshot
As of May 15, 2026, spot at $69.10, ATM IV 46.50%, IV rank 34.60%, expected move 13.33%. The cash-secured put on SWKS 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 SWKS specifically: SWKS IV at 46.50% is mid-range versus its 1-year history, so the credit collected on a SWKS cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 13.33% (roughly $9.21 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 SWKS expiries trade a higher absolute premium for lower per-day decay. Position sizing on SWKS should anchor to the underlying notional of $69.10 per share and to the trader's directional view on SWKS stock.
SWKS cash-secured put setup
The SWKS 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 SWKS near $69.10, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SWKS 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 SWKS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $65.00 | $2.20 |
SWKS cash-secured put risk and reward
- Net Premium / Debit
- +$220.00
- Max Profit (per contract)
- $220.00
- Max Loss (per contract)
- -$6,279.00
- Breakeven(s)
- $62.80
- Risk / Reward Ratio
- 0.035
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
SWKS cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on SWKS. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$6,279.00 |
| $15.29 | -77.9% | -$4,751.27 |
| $30.56 | -55.8% | -$3,223.54 |
| $45.84 | -33.7% | -$1,695.81 |
| $61.12 | -11.5% | -$168.09 |
| $76.40 | +10.6% | +$220.00 |
| $91.67 | +32.7% | +$220.00 |
| $106.95 | +54.8% | +$220.00 |
| $122.23 | +76.9% | +$220.00 |
| $137.51 | +99.0% | +$220.00 |
When traders use cash-secured put on SWKS
Cash-secured puts on SWKS earn premium while a trader waits to acquire SWKS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SWKS.
SWKS thesis for this cash-secured put
The market-implied 1-standard-deviation range for SWKS extends from approximately $59.89 on the downside to $78.31 on the upside. A SWKS cash-secured put lets a trader earn premium while waiting to acquire SWKS 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 SWKS IV rank near 34.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on SWKS should anchor more to the directional view and the expected-move geometry. As a Technology name, SWKS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SWKS-specific events.
SWKS 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. SWKS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SWKS alongside the broader basket even when SWKS-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on SWKS carry tail risk when realized volatility exceeds the implied move; review historical SWKS earnings reactions and macro stress periods before sizing. Always rebuild the position from current SWKS chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on SWKS?
- A cash-secured put on SWKS is the cash-secured put strategy applied to SWKS (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 SWKS stock trading near $69.10, the strikes shown on this page are snapped to the nearest listed SWKS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SWKS 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 SWKS cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 46.50%), the computed maximum profit is $220.00 per contract and the computed maximum loss is -$6,279.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SWKS cash-secured put?
- The breakeven for the SWKS cash-secured put priced on this page is roughly $62.80 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 SWKS market-implied 1-standard-deviation expected move is approximately 13.33%; 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 SWKS?
- Cash-secured puts on SWKS earn premium while a trader waits to acquire SWKS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SWKS.
- How does current SWKS implied volatility affect this cash-secured put?
- SWKS ATM IV is at 46.50% with IV rank near 34.60%, 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.