UAA Cash-Secured Put Strategy
UAA (Under Armour, Inc.), in the Consumer Cyclical sector, (Apparel - Manufacturers industry), listed on NYSE.
Under Armour, Inc., together with its subsidiaries, engages in the developing, marketing, and distributing performance apparel, footwear, and accessories for men, women, and youth. The company offers its apparel in compression, fitted, and loose fit types. It also provides footwear products for running, training, basketball, cleated sports, recovery, and outdoor applications. In addition, the company offers accessories, which include gloves, bags, headwear, and sports masks; and digital subscription and advertising services under the MapMyRun and MapMyRide platforms. It primarily offers its products under the UNDER ARMOUR, UA, HEATGEAR, COLDGEAR, HOVR, PROTECT THIS HOUSE, I WILL, UA Logo, ARMOUR FLEECE, and ARMOUR BRA brands. The company sells its products through wholesale channels, including national and regional sporting goods chains, independent and specialty retailers, department store chains, mono-branded Under Armour retail stores, institutional athletic departments, and leagues and teams, as well as independent distributors; and directly to consumers through a network of 422 brand and factory house stores, as well as through e-commerce websites.
UAA (Under Armour, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Manufacturers, with a market capitalization of approximately $2.18B, a beta of 1.73 versus the broader market, a 52-week range of 4.13-8.15, average daily share volume of 10.2M, a public-listing history dating back to 2005, approximately 7K full-time employees. These structural characteristics shape how UAA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.73 indicates UAA 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 UAA?
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 UAA snapshot
As of May 15, 2026, spot at $5.21, ATM IV 54.20%, IV rank 19.11%, expected move 15.54%. The cash-secured put on UAA 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 UAA specifically: UAA IV at 54.20% is on the cheap side of its 1-year range, which means a premium-selling UAA cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 15.54% (roughly $0.81 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 UAA expiries trade a higher absolute premium for lower per-day decay. Position sizing on UAA should anchor to the underlying notional of $5.21 per share and to the trader's directional view on UAA stock.
UAA cash-secured put setup
The UAA 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 UAA near $5.21, the first option leg uses a $4.95 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UAA 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 UAA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $4.95 | N/A |
UAA cash-secured put risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
UAA cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on UAA. 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.
When traders use cash-secured put on UAA
Cash-secured puts on UAA earn premium while a trader waits to acquire UAA stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning UAA.
UAA thesis for this cash-secured put
The market-implied 1-standard-deviation range for UAA extends from approximately $4.40 on the downside to $6.02 on the upside. A UAA cash-secured put lets a trader earn premium while waiting to acquire UAA 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 UAA IV rank near 19.11% 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 UAA at 54.20%. As a Consumer Cyclical name, UAA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UAA-specific events.
UAA 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. UAA positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UAA alongside the broader basket even when UAA-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on UAA carry tail risk when realized volatility exceeds the implied move; review historical UAA earnings reactions and macro stress periods before sizing. Always rebuild the position from current UAA chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on UAA?
- A cash-secured put on UAA is the cash-secured put strategy applied to UAA (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 UAA stock trading near $5.21, the strikes shown on this page are snapped to the nearest listed UAA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UAA 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 UAA cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 54.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UAA cash-secured put?
- The breakeven for the UAA cash-secured put priced on this page is no defined breakeven on the modeled curve 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 UAA market-implied 1-standard-deviation expected move is approximately 15.54%; 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 UAA?
- Cash-secured puts on UAA earn premium while a trader waits to acquire UAA stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning UAA.
- How does current UAA implied volatility affect this cash-secured put?
- UAA ATM IV is at 54.20% with IV rank near 19.11%, 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.