WASH Cash-Secured Put Strategy

WASH (Washington Trust Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.

Washington Trust Bancorp, Inc. operates as the bank holding company for The Washington Trust Company, of Westerly that offers various banking and financial services to individuals and businesses. The company operates in two segments, Commercial Banking and Wealth Management Services. The Commercial Banking segment provides various commercial and retail lending products, such as commercial real estate loans, including commercial mortgages and construction loans; commercial and industrial loans; residential real estate loans that consist of mortgage and homeowner construction loans; and consumer loans comprising home equity loans and lines of credit, personal installment loans, and loans to individuals secured by general aviation aircraft. This segment also offers deposit accounts, including interest-bearing and noninterest-bearing demand deposits, NOW and savings accounts, money market and retirement deposit accounts, and time deposits, as well as debit card, automated teller machine, telephone banking, internet banking, mobile banking, remote deposit capture, and other cash management services. The Wealth Management Services segment provides investment management; financial planning; personal trust and estate services, such as trustee, personal representative, custodian, and guardian; and settlement of decedents' estates, as well as institutional trust services comprising custody and fiduciary services. This segment serves personal and institutional clients.

WASH (Washington Trust Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $598.1M, a trailing P/E of 11.34, a beta of 0.73 versus the broader market, a 52-week range of 25.23-37.08, average daily share volume of 194K, a public-listing history dating back to 1987, approximately 618 full-time employees. These structural characteristics shape how WASH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.73 places WASH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.34 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. WASH 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 WASH?

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 WASH snapshot

As of May 15, 2026, spot at $31.05, ATM IV 54.20%, IV rank 23.12%, expected move 15.54%. The cash-secured put on WASH 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 WASH specifically: WASH IV at 54.20% is on the cheap side of its 1-year range, which means a premium-selling WASH 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 $4.82 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 WASH expiries trade a higher absolute premium for lower per-day decay. Position sizing on WASH should anchor to the underlying notional of $31.05 per share and to the trader's directional view on WASH stock.

WASH cash-secured put setup

The WASH 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 WASH near $31.05, the first option leg uses a $29.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WASH 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 WASH shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$29.50N/A

WASH 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.

WASH cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on WASH. 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 WASH

Cash-secured puts on WASH earn premium while a trader waits to acquire WASH stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning WASH.

WASH thesis for this cash-secured put

The market-implied 1-standard-deviation range for WASH extends from approximately $26.23 on the downside to $35.87 on the upside. A WASH cash-secured put lets a trader earn premium while waiting to acquire WASH 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 WASH IV rank near 23.12% 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 WASH at 54.20%. As a Financial Services name, WASH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WASH-specific events.

WASH 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. WASH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WASH alongside the broader basket even when WASH-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on WASH carry tail risk when realized volatility exceeds the implied move; review historical WASH earnings reactions and macro stress periods before sizing. Always rebuild the position from current WASH chain quotes before placing a trade.

Frequently asked questions

What is a cash-secured put on WASH?
A cash-secured put on WASH is the cash-secured put strategy applied to WASH (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 WASH stock trading near $31.05, the strikes shown on this page are snapped to the nearest listed WASH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are WASH 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 WASH 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 WASH cash-secured put?
The breakeven for the WASH 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 WASH 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 WASH?
Cash-secured puts on WASH earn premium while a trader waits to acquire WASH stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning WASH.
How does current WASH implied volatility affect this cash-secured put?
WASH ATM IV is at 54.20% with IV rank near 23.12%, 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.

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