TNK Cash-Secured Put Strategy
TNK (Teekay Tankers Ltd.), in the Industrials sector, (Marine Shipping industry), listed on NYSE.
Teekay Tankers Ltd. specializes in providing essential marine transportation solutions to the global oil industry, with its operations spanning Bermuda and international waters. The company's service offerings encompass both voyage and time charter arrangements, alongside specialized offshore ship-to-ship transfer operations for a diverse range of commodities. These primarily include crude oil and refined petroleum products, but also extend to liquid gases and various other specialized cargo. Beyond shipping, Teekay Tankers Ltd. further extends its expertise to include comprehensive commercial and technical management services for tankers. As of December 31, 2021, the company operated a substantial fleet, comprising 48 owned and leased double-hull oil tankers. This is supplemented by two Aframax tankers and a single LR2 tanker, all acquired via time charter agreements.
TNK (Teekay Tankers Ltd.) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $2.36B, a trailing P/E of 5.51, a beta of -0.27 versus the broader market, a 52-week range of 41.05-83.99, average daily share volume of 431K, a public-listing history dating back to 2007, approximately 2K full-time employees. These structural characteristics shape how TNK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.27 indicates TNK 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 5.51 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. TNK 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 TNK?
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 TNK snapshot
As of June 29, 2026, spot at $66.16, ATM IV 40.20%, IV rank 28.01%, expected move 11.53%. The cash-secured put on TNK 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 53-day expiry.
Why this cash-secured put structure on TNK specifically: TNK IV at 40.20% is on the cheap side of its 1-year range, which means a premium-selling TNK cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 11.53% (roughly $7.62 on the underlying). The 53-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TNK expiries trade a higher absolute premium for lower per-day decay. Position sizing on TNK should anchor to the underlying notional of $66.16 per share and to the trader's directional view on TNK stock.
TNK cash-secured put setup
The TNK 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 TNK near $66.16, the first option leg uses a $64.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TNK chain at a 53-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 TNK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $64.00 | $2.95 |
TNK cash-secured put risk and reward
- Net Premium / Debit
- +$295.00
- Max Profit (per contract)
- $295.00
- Max Loss (per contract)
- -$6,104.00
- Breakeven(s)
- $61.05
- Risk / Reward Ratio
- 0.048
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
TNK cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on TNK. 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% | -$6,104.00 |
| $14.64 | -77.9% | -$4,641.28 |
| $29.26 | -55.8% | -$3,178.55 |
| $43.89 | -33.7% | -$1,715.83 |
| $58.52 | -11.5% | -$253.11 |
| $73.15 | +10.6% | +$295.00 |
| $87.77 | +32.7% | +$295.00 |
| $102.40 | +54.8% | +$295.00 |
| $117.03 | +76.9% | +$295.00 |
| $131.66 | +99.0% | +$295.00 |
When traders use cash-secured put on TNK
Cash-secured puts on TNK earn premium while a trader waits to acquire TNK stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TNK.
TNK thesis for this cash-secured put
The market-implied 1-standard-deviation range for TNK extends from approximately $58.54 on the downside to $73.78 on the upside. A TNK cash-secured put lets a trader earn premium while waiting to acquire TNK 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 TNK IV rank near 28.01% 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 TNK at 40.20%. As a Industrials name, TNK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TNK-specific events.
TNK 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. TNK positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TNK alongside the broader basket even when TNK-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on TNK carry tail risk when realized volatility exceeds the implied move; review historical TNK earnings reactions and macro stress periods before sizing. Always rebuild the position from current TNK chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on TNK?
- A cash-secured put on TNK is the cash-secured put strategy applied to TNK (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 TNK stock trading near $66.16, the strikes shown on this page are snapped to the nearest listed TNK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TNK 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 TNK cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 40.20%), the computed maximum profit is $295.00 per contract and the computed maximum loss is -$6,104.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TNK cash-secured put?
- The breakeven for the TNK cash-secured put priced on this page is roughly $61.05 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 TNK market-implied 1-standard-deviation expected move is approximately 11.53%; 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 TNK?
- Cash-secured puts on TNK earn premium while a trader waits to acquire TNK stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TNK.
- How does current TNK implied volatility affect this cash-secured put?
- TNK ATM IV is at 40.20% with IV rank near 28.01%, 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.