TOST Cash-Secured Put Strategy
TOST (Toast, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NYSE.
Toast, Inc. operates a cloud-based and digital technology platform for the restaurant industry in the United States and Ireland. The company offers Toast Point of Sale (POS), a hardware product; Toast Order & Pay, which allows guests to order and pay from their mobile devices; Toast Flex that is used for on-counter order and pay, as well as used as a server station, guest kiosk, kitchen display system, or order fulfillment station; Toast Go, a handheld POS device that enhances the table turn times through tableside ordering and payment acceptance; and Toast Tap, a card reader. It also provides kitchen display system software that connects the front of the house with the kitchen staff; multi-location management software, which allows customers to manage and standardize their operations and configure menus; xtraCHEF that provides back-office tools; and Toast Flex for Kitchen, a larger format mountable piece of hardware that can be used as a kitchen screen. In addition, the company offers Toast Online Ordering & Toast TakeOut app, a software-based platform that provides restaurants to take off-premises orders directly through their branded website; First-Party Delivery services for restaurants to manage a fleet of drivers, and customize delivery hours, zones, fees, and minimum ticket sizes; Toast Delivery Services, which enables restaurants to utilize a partner network of delivery drivers; and Toast Delivery Partners services. Further, it provides loyalty programs and gift cards; payroll and team management products; business owner policy insurance and restaurant-specific add-ons; payment processing solutions; loans advanced to restaurants; purchase financing; reporting and analytics solutions; Toast Partner Connect that allows customers to discover, select, and connect their restaurant to its partners; and bi-directional APIs. The company was incorporated in 2011 and is headquartered in Boston, Massachusetts.
TOST (Toast, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $12.95B, a trailing P/E of 31.81, a beta of 1.82 versus the broader market, a 52-week range of 22.26-49.66, average daily share volume of 13.3M, a public-listing history dating back to 2021, approximately 6K full-time employees. These structural characteristics shape how TOST stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.82 indicates TOST has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a cash-secured put on TOST?
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 TOST snapshot
As of May 15, 2026, spot at $22.95, ATM IV 53.07%, IV rank 59.00%, expected move 15.22%. The cash-secured put on TOST 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 TOST specifically: TOST IV at 53.07% is mid-range versus its 1-year history, so the credit collected on a TOST cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 15.22% (roughly $3.49 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 TOST expiries trade a higher absolute premium for lower per-day decay. Position sizing on TOST should anchor to the underlying notional of $22.95 per share and to the trader's directional view on TOST stock.
TOST cash-secured put setup
The TOST 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 TOST near $22.95, the first option leg uses a $22.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TOST 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 TOST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $22.00 | $0.82 |
TOST cash-secured put risk and reward
- Net Premium / Debit
- +$81.50
- Max Profit (per contract)
- $81.50
- Max Loss (per contract)
- -$2,117.50
- Breakeven(s)
- $21.19
- Risk / Reward Ratio
- 0.038
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
TOST cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on TOST. 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% | -$2,117.50 |
| $5.08 | -77.9% | -$1,610.17 |
| $10.16 | -55.7% | -$1,102.85 |
| $15.23 | -33.6% | -$595.52 |
| $20.30 | -11.5% | -$88.19 |
| $25.38 | +10.6% | +$81.50 |
| $30.45 | +32.7% | +$81.50 |
| $35.52 | +54.8% | +$81.50 |
| $40.60 | +76.9% | +$81.50 |
| $45.67 | +99.0% | +$81.50 |
When traders use cash-secured put on TOST
Cash-secured puts on TOST earn premium while a trader waits to acquire TOST stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TOST.
TOST thesis for this cash-secured put
The market-implied 1-standard-deviation range for TOST extends from approximately $19.46 on the downside to $26.44 on the upside. A TOST cash-secured put lets a trader earn premium while waiting to acquire TOST 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 TOST IV rank near 59.00% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on TOST should anchor more to the directional view and the expected-move geometry. As a Technology name, TOST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TOST-specific events.
TOST 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. TOST positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TOST alongside the broader basket even when TOST-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on TOST carry tail risk when realized volatility exceeds the implied move; review historical TOST earnings reactions and macro stress periods before sizing. Always rebuild the position from current TOST chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on TOST?
- A cash-secured put on TOST is the cash-secured put strategy applied to TOST (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 TOST stock trading near $22.95, the strikes shown on this page are snapped to the nearest listed TOST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TOST 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 TOST cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 53.07%), the computed maximum profit is $81.50 per contract and the computed maximum loss is -$2,117.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TOST cash-secured put?
- The breakeven for the TOST cash-secured put priced on this page is roughly $21.19 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 TOST market-implied 1-standard-deviation expected move is approximately 15.22%; 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 TOST?
- Cash-secured puts on TOST earn premium while a trader waits to acquire TOST stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TOST.
- How does current TOST implied volatility affect this cash-secured put?
- TOST ATM IV is at 53.07% with IV rank near 59.00%, 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.