HIPS Cash-Secured Put Strategy
HIPS (GraniteShares HIPS US High Income ETF), in the Financial Services sector, (Asset Management - Income industry), listed on AMEX.
The GraniteShares HIPS US High Income ETF seeks to track the performance, before fees and expenses, of the EQM High Income Pass-Through Securities Index*.
HIPS (GraniteShares HIPS US High Income ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $105.0M, a beta of 0.66 versus the broader market, a 52-week range of 11.39-12.46, average daily share volume of 45K, a public-listing history dating back to 2015. These structural characteristics shape how HIPS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.66 indicates HIPS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HIPS 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 HIPS?
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 HIPS snapshot
As of May 15, 2026, spot at $11.75, ATM IV 318.80%, IV rank 65.02%, expected move 14.98%. The cash-secured put on HIPS 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 HIPS specifically: HIPS IV at 318.80% is mid-range versus its 1-year history, so the credit collected on a HIPS cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.98% (roughly $1.76 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 HIPS expiries trade a higher absolute premium for lower per-day decay. Position sizing on HIPS should anchor to the underlying notional of $11.75 per share and to the trader's directional view on HIPS etf.
HIPS cash-secured put setup
The HIPS 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 HIPS near $11.75, the first option leg uses a $11.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HIPS 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 HIPS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $11.00 | $0.25 |
HIPS cash-secured put risk and reward
- Net Premium / Debit
- +$25.00
- Max Profit (per contract)
- $25.00
- Max Loss (per contract)
- -$1,074.00
- Breakeven(s)
- $10.75
- Risk / Reward Ratio
- 0.023
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
HIPS cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on HIPS. 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 | -99.9% | -$1,074.00 |
| $2.61 | -77.8% | -$814.31 |
| $5.20 | -55.7% | -$554.62 |
| $7.80 | -33.6% | -$294.93 |
| $10.40 | -11.5% | -$35.25 |
| $12.99 | +10.6% | +$25.00 |
| $15.59 | +32.7% | +$25.00 |
| $18.19 | +54.8% | +$25.00 |
| $20.79 | +76.9% | +$25.00 |
| $23.38 | +99.0% | +$25.00 |
When traders use cash-secured put on HIPS
Cash-secured puts on HIPS earn premium while a trader waits to acquire HIPS etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HIPS.
HIPS thesis for this cash-secured put
The market-implied 1-standard-deviation range for HIPS extends from approximately $9.99 on the downside to $13.51 on the upside. A HIPS cash-secured put lets a trader earn premium while waiting to acquire HIPS 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 HIPS IV rank near 65.02% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on HIPS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, HIPS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HIPS-specific events.
HIPS 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. HIPS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HIPS alongside the broader basket even when HIPS-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on HIPS carry tail risk when realized volatility exceeds the implied move; review historical HIPS earnings reactions and macro stress periods before sizing. Always rebuild the position from current HIPS chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on HIPS?
- A cash-secured put on HIPS is the cash-secured put strategy applied to HIPS (etf). 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 HIPS etf trading near $11.75, the strikes shown on this page are snapped to the nearest listed HIPS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HIPS 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 HIPS cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 318.80%), the computed maximum profit is $25.00 per contract and the computed maximum loss is -$1,074.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HIPS cash-secured put?
- The breakeven for the HIPS cash-secured put priced on this page is roughly $10.75 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 HIPS market-implied 1-standard-deviation expected move is approximately 14.98%; 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 HIPS?
- Cash-secured puts on HIPS earn premium while a trader waits to acquire HIPS etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HIPS.
- How does current HIPS implied volatility affect this cash-secured put?
- HIPS ATM IV is at 318.80% with IV rank near 65.02%, 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.