TER Cash-Secured Put Strategy
TER (Teradyne, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide. The company operates through Semiconductor Test, System Test, Industrial Automation, and Wireless Test segments. The Semiconductor Test segment offers products and services for wafer level and device package testing in automotive, industrial, communications, consumer, smartphones, cloud computer and electronic game, and other applications. This segment also provides FLEX test platform systems; J750 test system to address the volume semiconductor devices; Magnum platform that tests memory devices, such as flash memory and DRAM; and ETS platform for semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. It serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; foundries; and semiconductor assembly and test providers. The System Test segment offers defense/aerospace test instrumentation and systems; storage test systems; and circuit-board test and inspection systems.
TER (Teradyne, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $56.88B, a trailing P/E of 66.55, a beta of 1.79 versus the broader market, a 52-week range of 75.99-422.11, average daily share volume of 3.5M, a public-listing history dating back to 1970, approximately 7K full-time employees. These structural characteristics shape how TER stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.79 indicates TER has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 66.55 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. TER 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 TER?
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 TER snapshot
As of May 15, 2026, spot at $339.94, ATM IV 69.34%, IV rank 65.90%, expected move 19.88%. The cash-secured put on TER 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 28-day expiry.
Why this cash-secured put structure on TER specifically: TER IV at 69.34% is mid-range versus its 1-year history, so the credit collected on a TER cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 19.88% (roughly $67.57 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TER expiries trade a higher absolute premium for lower per-day decay. Position sizing on TER should anchor to the underlying notional of $339.94 per share and to the trader's directional view on TER stock.
TER cash-secured put setup
The TER 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 TER near $339.94, the first option leg uses a $325.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TER chain at a 28-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 TER shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $325.00 | $19.05 |
TER cash-secured put risk and reward
- Net Premium / Debit
- +$1,905.00
- Max Profit (per contract)
- $1,905.00
- Max Loss (per contract)
- -$30,594.00
- Breakeven(s)
- $305.95
- Risk / Reward Ratio
- 0.062
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
TER cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on TER. 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% | -$30,594.00 |
| $75.17 | -77.9% | -$23,077.85 |
| $150.33 | -55.8% | -$15,561.70 |
| $225.49 | -33.7% | -$8,045.55 |
| $300.66 | -11.6% | -$529.40 |
| $375.82 | +10.6% | +$1,905.00 |
| $450.98 | +32.7% | +$1,905.00 |
| $526.14 | +54.8% | +$1,905.00 |
| $601.30 | +76.9% | +$1,905.00 |
| $676.46 | +99.0% | +$1,905.00 |
When traders use cash-secured put on TER
Cash-secured puts on TER earn premium while a trader waits to acquire TER stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TER.
TER thesis for this cash-secured put
The market-implied 1-standard-deviation range for TER extends from approximately $272.37 on the downside to $407.51 on the upside. A TER cash-secured put lets a trader earn premium while waiting to acquire TER 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 TER IV rank near 65.90% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on TER should anchor more to the directional view and the expected-move geometry. As a Technology name, TER options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TER-specific events.
TER 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. TER positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TER alongside the broader basket even when TER-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on TER carry tail risk when realized volatility exceeds the implied move; review historical TER earnings reactions and macro stress periods before sizing. Always rebuild the position from current TER chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on TER?
- A cash-secured put on TER is the cash-secured put strategy applied to TER (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 TER stock trading near $339.94, the strikes shown on this page are snapped to the nearest listed TER chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TER 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 TER cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 69.34%), the computed maximum profit is $1,905.00 per contract and the computed maximum loss is -$30,594.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TER cash-secured put?
- The breakeven for the TER cash-secured put priced on this page is roughly $305.95 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 TER market-implied 1-standard-deviation expected move is approximately 19.88%; 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 TER?
- Cash-secured puts on TER earn premium while a trader waits to acquire TER stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TER.
- How does current TER implied volatility affect this cash-secured put?
- TER ATM IV is at 69.34% with IV rank near 65.90%, 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.