TEX Cash-Secured Put Strategy
TEX (Terex Corporation), in the Industrials sector, (Agricultural - Machinery industry), listed on NYSE.
Terex Corporation manufactures and sells aerial work platforms and materials processing machinery worldwide. It operates in two segments, Aerial Work Platforms (AWP) and Materials Processing (MP). The AWP segment designs, manufactures, services, and markets aerial work platform equipment, utility equipment, and telehandlers under the Terex and Genie brands. Its products include portable material lifts, portable aerial work platforms, trailer-mounted articulating booms, self-propelled articulating and telescopic booms, scissor lifts, utility equipment, and telehandlers, as well as related components and replacement parts for construction and maintenance of industrial, commercial, institutional, and residential buildings and facilities, utility and telecommunication lines, construction and foundation drilling applications, and other commercial operations, as well as in tree trimming and various infrastructure projects. The MP segment's materials processing and specialty equipment includes crushers, washing systems, screens, trommels, apron feeders, material handlers, pick and carry cranes, rough terrain cranes, tower cranes, wood processing, biomass and recycling equipment, concrete mixer trucks and concrete pavers, conveyors, and related components and replacement parts under the Terex, Powerscreen, Fuchs, EvoQuip, Canica, Cedarapids, CBI, Simplicity, Franna, Terex Ecotec, Finlay, Terex Washing Systems, Terex MPS, Terex Jaques, Terex Advance, ProStack, Terex Bid-Well, MDS, and Terex Recycling Systems brands and business lines. Its products are used in construction, infrastructure, and recycling projects; quarrying and mining, and material handling applications; maintenance applications to lift equipment or material; and landscaping and biomass production industries.
TEX (Terex Corporation) trades in the Industrials sector, specifically Agricultural - Machinery, with a market capitalization of approximately $4.59B, a trailing P/E of 38.40, a beta of 1.57 versus the broader market, a 52-week range of 41.7-71.5, average daily share volume of 1.4M, a public-listing history dating back to 1980, approximately 11K full-time employees. These structural characteristics shape how TEX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.57 indicates TEX 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 38.40 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. TEX 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 TEX?
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 TEX snapshot
As of May 15, 2026, spot at $59.80, ATM IV 49.30%, IV rank 41.78%, expected move 14.13%. The cash-secured put on TEX 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 63-day expiry.
Why this cash-secured put structure on TEX specifically: TEX IV at 49.30% is mid-range versus its 1-year history, so the credit collected on a TEX cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.13% (roughly $8.45 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TEX expiries trade a higher absolute premium for lower per-day decay. Position sizing on TEX should anchor to the underlying notional of $59.80 per share and to the trader's directional view on TEX stock.
TEX cash-secured put setup
The TEX 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 TEX near $59.80, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TEX chain at a 63-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 TEX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $55.00 | $2.18 |
TEX cash-secured put risk and reward
- Net Premium / Debit
- +$217.50
- Max Profit (per contract)
- $217.50
- Max Loss (per contract)
- -$5,281.50
- Breakeven(s)
- $52.83
- Risk / Reward Ratio
- 0.041
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
TEX cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on TEX. 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% | -$5,281.50 |
| $13.23 | -77.9% | -$3,959.40 |
| $26.45 | -55.8% | -$2,637.30 |
| $39.67 | -33.7% | -$1,315.20 |
| $52.89 | -11.5% | +$6.90 |
| $66.12 | +10.6% | +$217.50 |
| $79.34 | +32.7% | +$217.50 |
| $92.56 | +54.8% | +$217.50 |
| $105.78 | +76.9% | +$217.50 |
| $119.00 | +99.0% | +$217.50 |
When traders use cash-secured put on TEX
Cash-secured puts on TEX earn premium while a trader waits to acquire TEX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TEX.
TEX thesis for this cash-secured put
The market-implied 1-standard-deviation range for TEX extends from approximately $51.35 on the downside to $68.25 on the upside. A TEX cash-secured put lets a trader earn premium while waiting to acquire TEX 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 TEX IV rank near 41.78% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on TEX should anchor more to the directional view and the expected-move geometry. As a Industrials name, TEX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TEX-specific events.
TEX 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. TEX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TEX alongside the broader basket even when TEX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on TEX carry tail risk when realized volatility exceeds the implied move; review historical TEX earnings reactions and macro stress periods before sizing. Always rebuild the position from current TEX chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on TEX?
- A cash-secured put on TEX is the cash-secured put strategy applied to TEX (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 TEX stock trading near $59.80, the strikes shown on this page are snapped to the nearest listed TEX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TEX 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 TEX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 49.30%), the computed maximum profit is $217.50 per contract and the computed maximum loss is -$5,281.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TEX cash-secured put?
- The breakeven for the TEX cash-secured put priced on this page is roughly $52.83 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 TEX market-implied 1-standard-deviation expected move is approximately 14.13%; 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 TEX?
- Cash-secured puts on TEX earn premium while a trader waits to acquire TEX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TEX.
- How does current TEX implied volatility affect this cash-secured put?
- TEX ATM IV is at 49.30% with IV rank near 41.78%, 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.