TDY Cash-Secured Put Strategy
TDY (Teledyne Technologies Incorporated), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NYSE.
Teledyne Technologies Incorporated provides enabling technologies for industrial growth markets in the United States, Canada, the United Kingdom, Belgium, the Netherlands, and internationally. The company's Instrumentation segment offers monitoring and control instruments for marine, environmental, industrial, and other applications, as well as electronic test and measurement equipment; and power and communications connectivity devices for distributed instrumentation systems and sensor networks. Its Digital Imaging segment provides visible spectrum sensors and digital cameras for industrial machine vision and automated quality control, as well as for medical, research, and scientific applications; and infrared and X-ray spectra for use in industrial, government, and medical applications, as well as micro electromechanical systems and semiconductors, including analog-to-digital and digital-to-analog converters. This segment also offers thermal imaging systems, visible-light imaging systems, locater systems, measurement and diagnostic systems, and threat-detection solutions. The company's Aerospace and Defense Electronics segment provides electronic components and subsystems, as well as communications products, such as defense electronics, environment interconnects, data acquisition and communications equipment for aircraft, components and subsystems for wireless and satellite communications, and general aviation batteries. Its Engineered Systems segment offers systems engineering and integration, technology development, and manufacturing solutions for defense, space, environmental, and energy applications; and designs and manufactures electrochemical energy systems and electronics for military applications.
TDY (Teledyne Technologies Incorporated) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $29.46B, a trailing P/E of 31.90, a beta of 0.97 versus the broader market, a 52-week range of 483.02-693.38, average daily share volume of 319K, a public-listing history dating back to 1999, approximately 15K full-time employees. These structural characteristics shape how TDY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.97 places TDY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a cash-secured put on TDY?
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 TDY snapshot
As of May 15, 2026, spot at $616.85, ATM IV 27.10%, IV rank 49.09%, expected move 7.77%. The cash-secured put on TDY 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 TDY specifically: TDY IV at 27.10% is mid-range versus its 1-year history, so the credit collected on a TDY cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 7.77% (roughly $47.93 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 TDY expiries trade a higher absolute premium for lower per-day decay. Position sizing on TDY should anchor to the underlying notional of $616.85 per share and to the trader's directional view on TDY stock.
TDY cash-secured put setup
The TDY 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 TDY near $616.85, the first option leg uses a $590.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TDY 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 TDY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $590.00 | $9.70 |
TDY cash-secured put risk and reward
- Net Premium / Debit
- +$970.00
- Max Profit (per contract)
- $970.00
- Max Loss (per contract)
- -$58,029.00
- Breakeven(s)
- $580.30
- Risk / Reward Ratio
- 0.017
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
TDY cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on TDY. 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% | -$58,029.00 |
| $136.40 | -77.9% | -$44,390.22 |
| $272.79 | -55.8% | -$30,751.43 |
| $409.17 | -33.7% | -$17,112.65 |
| $545.56 | -11.6% | -$3,473.86 |
| $681.95 | +10.6% | +$970.00 |
| $818.34 | +32.7% | +$970.00 |
| $954.72 | +54.8% | +$970.00 |
| $1,091.11 | +76.9% | +$970.00 |
| $1,227.50 | +99.0% | +$970.00 |
When traders use cash-secured put on TDY
Cash-secured puts on TDY earn premium while a trader waits to acquire TDY stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TDY.
TDY thesis for this cash-secured put
The market-implied 1-standard-deviation range for TDY extends from approximately $568.92 on the downside to $664.78 on the upside. A TDY cash-secured put lets a trader earn premium while waiting to acquire TDY 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 TDY IV rank near 49.09% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on TDY should anchor more to the directional view and the expected-move geometry. As a Technology name, TDY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TDY-specific events.
TDY 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. TDY positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TDY alongside the broader basket even when TDY-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on TDY carry tail risk when realized volatility exceeds the implied move; review historical TDY earnings reactions and macro stress periods before sizing. Always rebuild the position from current TDY chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on TDY?
- A cash-secured put on TDY is the cash-secured put strategy applied to TDY (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 TDY stock trading near $616.85, the strikes shown on this page are snapped to the nearest listed TDY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TDY 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 TDY cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 27.10%), the computed maximum profit is $970.00 per contract and the computed maximum loss is -$58,029.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TDY cash-secured put?
- The breakeven for the TDY cash-secured put priced on this page is roughly $580.30 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 TDY market-implied 1-standard-deviation expected move is approximately 7.77%; 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 TDY?
- Cash-secured puts on TDY earn premium while a trader waits to acquire TDY stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TDY.
- How does current TDY implied volatility affect this cash-secured put?
- TDY ATM IV is at 27.10% with IV rank near 49.09%, 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.