SXI Cash-Secured Put Strategy
SXI (Standex International Corporation), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.
Standex International Corporation, together with subsidiaries, manufactures and sells various products and services for commercial and industrial markets in the United States and internationally. It operates through five segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions. The Electronics segment offers reed relays, fluid level, proximity, motion, flow, HVAC condensate, and custom electronics sensors; and current sense and advanced planar transformer technologies, value added assemblies, and mechanical packaging, as well as custom wound transformers and inductors for low and high frequency applications. The Engraving segment provides mold texturizing, slush molding tools, roll engraving, hygiene product tooling, and low observation vents, as well as project management and design services for stealth aircraft; and process machinery for various industries. The Scientific segment offers temperature controlled equipment for the medical, scientific, pharmaceutical, biotech, and industrial markets. The Engineering Technologies segment offers net and near net formed single-source customized solutions that are used in the manufacture of engineered components for the aviation, aerospace, defense, energy, industrial, medical, marine, oil and gas, and manned and unmanned space markets.
SXI (Standex International Corporation) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $3.06B, a trailing P/E of 30.78, a beta of 1.09 versus the broader market, a 52-week range of 144.62-284.71, average daily share volume of 220K, a public-listing history dating back to 1969, approximately 4K full-time employees. These structural characteristics shape how SXI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.09 places SXI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SXI 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 SXI?
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 SXI snapshot
As of May 15, 2026, spot at $249.52, ATM IV 38.40%, IV rank 70.84%, expected move 11.01%. The cash-secured put on SXI 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 98-day expiry.
Why this cash-secured put structure on SXI specifically: SXI IV at 38.40% is rich versus its 1-year range, which favors premium-selling structures like a SXI cash-secured put, with a market-implied 1-standard-deviation move of approximately 11.01% (roughly $27.47 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SXI expiries trade a higher absolute premium for lower per-day decay. Position sizing on SXI should anchor to the underlying notional of $249.52 per share and to the trader's directional view on SXI stock.
SXI cash-secured put setup
The SXI 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 SXI near $249.52, the first option leg uses a $240.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SXI chain at a 98-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 SXI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $240.00 | $14.40 |
SXI cash-secured put risk and reward
- Net Premium / Debit
- +$1,440.00
- Max Profit (per contract)
- $1,440.00
- Max Loss (per contract)
- -$22,559.00
- Breakeven(s)
- $225.60
- Risk / Reward Ratio
- 0.064
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
SXI cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on SXI. 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% | -$22,559.00 |
| $55.18 | -77.9% | -$17,042.09 |
| $110.35 | -55.8% | -$11,525.17 |
| $165.52 | -33.7% | -$6,008.26 |
| $220.69 | -11.6% | -$491.34 |
| $275.86 | +10.6% | +$1,440.00 |
| $331.02 | +32.7% | +$1,440.00 |
| $386.19 | +54.8% | +$1,440.00 |
| $441.36 | +76.9% | +$1,440.00 |
| $496.53 | +99.0% | +$1,440.00 |
When traders use cash-secured put on SXI
Cash-secured puts on SXI earn premium while a trader waits to acquire SXI stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SXI.
SXI thesis for this cash-secured put
The market-implied 1-standard-deviation range for SXI extends from approximately $222.05 on the downside to $276.99 on the upside. A SXI cash-secured put lets a trader earn premium while waiting to acquire SXI 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 SXI IV rank near 70.84% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on SXI at 38.40%. As a Industrials name, SXI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SXI-specific events.
SXI 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. SXI positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SXI alongside the broader basket even when SXI-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on SXI carry tail risk when realized volatility exceeds the implied move; review historical SXI earnings reactions and macro stress periods before sizing. Always rebuild the position from current SXI chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on SXI?
- A cash-secured put on SXI is the cash-secured put strategy applied to SXI (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 SXI stock trading near $249.52, the strikes shown on this page are snapped to the nearest listed SXI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SXI 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 SXI cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 38.40%), the computed maximum profit is $1,440.00 per contract and the computed maximum loss is -$22,559.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SXI cash-secured put?
- The breakeven for the SXI cash-secured put priced on this page is roughly $225.60 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 SXI market-implied 1-standard-deviation expected move is approximately 11.01%; 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 SXI?
- Cash-secured puts on SXI earn premium while a trader waits to acquire SXI stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SXI.
- How does current SXI implied volatility affect this cash-secured put?
- SXI ATM IV is at 38.40% with IV rank near 70.84%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.