ULS Cash-Secured Put Strategy
ULS (UL Solutions Inc.), in the Industrials sector, (Specialty Business Services industry), listed on NYSE.
UL Solutions Inc. provides safety science services worldwide. It operates through three segments: Industrial, Consumer, and Software and Advisory. The Industrial segment provides testing, inspection, and certification services across various end markets, including energy, industrial automation, engineered materials, and built environment, as well as stakeholders, such as manufacturers, building owners, end users, and regulators. The Consumer segment offers safety certification testing, ongoing certification, global market access, testing for connectivity, performance and quality, and critical systems advisory and training services, as well as product market acceptance and risk mitigation services for customers in the consumer products end markets comprising consumer electronics, medical devices, information technologies, appliances, HVAC, lighting, and retail, as well as consumer applications, such as new mobility, smart products, and 5G. The Software and Advisory segment provide software and technical advisory services that enable customers to manage regulatory requirements, deliver supply chain transparency, and operationalize sustainability for regulated industries, including life sciences, supply chain regulations, transparency needs, and new ESG and sustainability requirements. It offers ULTRUS software brand to help customers improve speed to market, sustainability and safety.
ULS (UL Solutions Inc.) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $19.88B, a trailing P/E of 56.90, a beta of 0.59 versus the broader market, a 52-week range of 61.64-107.54, average daily share volume of 815K, a public-listing history dating back to 2014, approximately 15K full-time employees. These structural characteristics shape how ULS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.59 indicates ULS 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 56.90 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. ULS 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 ULS?
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 ULS snapshot
As of May 15, 2026, spot at $99.88, ATM IV 35.00%, IV rank 32.09%, expected move 10.03%. The cash-secured put on ULS 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 154-day expiry.
Why this cash-secured put structure on ULS specifically: ULS IV at 35.00% is mid-range versus its 1-year history, so the credit collected on a ULS cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.03% (roughly $10.02 on the underlying). The 154-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ULS expiries trade a higher absolute premium for lower per-day decay. Position sizing on ULS should anchor to the underlying notional of $99.88 per share and to the trader's directional view on ULS stock.
ULS cash-secured put setup
The ULS 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 ULS near $99.88, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ULS chain at a 154-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 ULS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $95.00 | $6.90 |
ULS cash-secured put risk and reward
- Net Premium / Debit
- +$690.00
- Max Profit (per contract)
- $690.00
- Max Loss (per contract)
- -$8,809.00
- Breakeven(s)
- $88.10
- Risk / Reward Ratio
- 0.078
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
ULS cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ULS. 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% | -$8,809.00 |
| $22.09 | -77.9% | -$6,600.71 |
| $44.18 | -55.8% | -$4,392.42 |
| $66.26 | -33.7% | -$2,184.13 |
| $88.34 | -11.6% | +$24.17 |
| $110.42 | +10.6% | +$690.00 |
| $132.51 | +32.7% | +$690.00 |
| $154.59 | +54.8% | +$690.00 |
| $176.67 | +76.9% | +$690.00 |
| $198.76 | +99.0% | +$690.00 |
When traders use cash-secured put on ULS
Cash-secured puts on ULS earn premium while a trader waits to acquire ULS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ULS.
ULS thesis for this cash-secured put
The market-implied 1-standard-deviation range for ULS extends from approximately $89.86 on the downside to $109.90 on the upside. A ULS cash-secured put lets a trader earn premium while waiting to acquire ULS 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 ULS IV rank near 32.09% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on ULS should anchor more to the directional view and the expected-move geometry. As a Industrials name, ULS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ULS-specific events.
ULS 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. ULS positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ULS alongside the broader basket even when ULS-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ULS carry tail risk when realized volatility exceeds the implied move; review historical ULS earnings reactions and macro stress periods before sizing. Always rebuild the position from current ULS chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on ULS?
- A cash-secured put on ULS is the cash-secured put strategy applied to ULS (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 ULS stock trading near $99.88, the strikes shown on this page are snapped to the nearest listed ULS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ULS 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 ULS cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 35.00%), the computed maximum profit is $690.00 per contract and the computed maximum loss is -$8,809.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ULS cash-secured put?
- The breakeven for the ULS cash-secured put priced on this page is roughly $88.10 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 ULS market-implied 1-standard-deviation expected move is approximately 10.03%; 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 ULS?
- Cash-secured puts on ULS earn premium while a trader waits to acquire ULS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ULS.
- How does current ULS implied volatility affect this cash-secured put?
- ULS ATM IV is at 35.00% with IV rank near 32.09%, 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.