TDC Cash-Secured Put Strategy
TDC (Teradata Corporation), in the Technology sector, (Software - Infrastructure industry), listed on NYSE.
Teradata Corporation, together with its subsidiaries, provides a connected multi-cloud data platform for enterprise analytics. The company offers Teradata Vantage, a data platform that allows companies to leverage their data across an enterprise, as well as connects various sources of data to drive ecosystem simplification and support customers on their journey to the cloud through an integrated migration. Its business consulting services include support services for organizations to establish a data and analytic vision, and identify and operationalize analytical opportunities, as well as enable a multi-cloud ecosystem architecture and ensure the analytical infrastructure delivers value. In addition, it offers support and maintenance services. The company serves clients in financial services, government, healthcare, manufacturing, retail, telecommunications, and travel/transportation sectors through a direct sales force in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. Teradata Corporation was incorporated in 1979 and is headquartered in San Diego, California.
TDC (Teradata Corporation) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $3.08B, a trailing P/E of 7.22, a beta of 0.51 versus the broader market, a 52-week range of 19.83-41.78, average daily share volume of 2.1M, a public-listing history dating back to 2007, approximately 6K full-time employees. These structural characteristics shape how TDC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.51 indicates TDC 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 7.22 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a cash-secured put on TDC?
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 TDC snapshot
As of May 15, 2026, spot at $33.75, ATM IV 46.10%, IV rank 19.20%, expected move 13.22%. The cash-secured put on TDC 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 TDC specifically: TDC IV at 46.10% is on the cheap side of its 1-year range, which means a premium-selling TDC cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 13.22% (roughly $4.46 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 TDC expiries trade a higher absolute premium for lower per-day decay. Position sizing on TDC should anchor to the underlying notional of $33.75 per share and to the trader's directional view on TDC stock.
TDC cash-secured put setup
The TDC 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 TDC near $33.75, the first option leg uses a $32.06 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TDC 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 TDC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $32.06 | N/A |
TDC 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.
TDC cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on TDC. 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 TDC
Cash-secured puts on TDC earn premium while a trader waits to acquire TDC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TDC.
TDC thesis for this cash-secured put
The market-implied 1-standard-deviation range for TDC extends from approximately $29.29 on the downside to $38.21 on the upside. A TDC cash-secured put lets a trader earn premium while waiting to acquire TDC 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 TDC IV rank near 19.20% 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 TDC at 46.10%. As a Technology name, TDC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TDC-specific events.
TDC 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. TDC positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TDC alongside the broader basket even when TDC-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on TDC carry tail risk when realized volatility exceeds the implied move; review historical TDC earnings reactions and macro stress periods before sizing. Always rebuild the position from current TDC chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on TDC?
- A cash-secured put on TDC is the cash-secured put strategy applied to TDC (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 TDC stock trading near $33.75, the strikes shown on this page are snapped to the nearest listed TDC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TDC 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 TDC cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 46.10%), 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 TDC cash-secured put?
- The breakeven for the TDC 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 TDC market-implied 1-standard-deviation expected move is approximately 13.22%; 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 TDC?
- Cash-secured puts on TDC earn premium while a trader waits to acquire TDC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TDC.
- How does current TDC implied volatility affect this cash-secured put?
- TDC ATM IV is at 46.10% with IV rank near 19.20%, 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.