ACIC Cash-Secured Put Strategy
ACIC (American Coastal Insurance Corporation), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NASDAQ.
American Coastal Insurance Corporation operates as a property and casualty insurance holding company that sources, writes, and services residential personal and commercial property, and casualty insurance policies in the United States. The company offers structure, content, and liability coverage for standard single-family homeowners, renters, and condominium unit owners. It also provides commercial multi-peril property insurance for residential condominium associations and apartments, as well as loss or damage to buildings, inventory, and equipment caused by fire, wind, hail, water, theft, and vandalism. In addition, the company offers equipment breakdown, identity theft, cyber security, and flood policies. The company markets and distributes its products through a network of independent agencies. The company was formerly known as United Insurance Holdings Corp. and changed its name to American Coastal Insurance Corporation in August 2023.
ACIC (American Coastal Insurance Corporation) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $520.3M, a trailing P/E of 4.98, a beta of -0.47 versus the broader market, a 52-week range of 9.8-13.06, average daily share volume of 237K, a public-listing history dating back to 2007, approximately 65 full-time employees. These structural characteristics shape how ACIC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.47 indicates ACIC 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 4.98 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. ACIC 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 ACIC?
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 ACIC snapshot
As of May 15, 2026, spot at $10.92, ATM IV 26.00%, IV rank 2.51%, expected move 7.45%. The cash-secured put on ACIC 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 ACIC specifically: ACIC IV at 26.00% is on the cheap side of its 1-year range, which means a premium-selling ACIC cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.45% (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 ACIC expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACIC should anchor to the underlying notional of $10.92 per share and to the trader's directional view on ACIC stock.
ACIC cash-secured put setup
The ACIC 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 ACIC near $10.92, the first option leg uses a $10.37 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACIC 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 ACIC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $10.37 | N/A |
ACIC 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.
ACIC cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ACIC. 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 ACIC
Cash-secured puts on ACIC earn premium while a trader waits to acquire ACIC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ACIC.
ACIC thesis for this cash-secured put
The market-implied 1-standard-deviation range for ACIC extends from approximately $10.11 on the downside to $11.73 on the upside. A ACIC cash-secured put lets a trader earn premium while waiting to acquire ACIC 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 ACIC IV rank near 2.51% 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 ACIC at 26.00%. As a Financial Services name, ACIC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACIC-specific events.
ACIC 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. ACIC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ACIC alongside the broader basket even when ACIC-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ACIC carry tail risk when realized volatility exceeds the implied move; review historical ACIC earnings reactions and macro stress periods before sizing. Always rebuild the position from current ACIC chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on ACIC?
- A cash-secured put on ACIC is the cash-secured put strategy applied to ACIC (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 ACIC stock trading near $10.92, the strikes shown on this page are snapped to the nearest listed ACIC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ACIC 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 ACIC cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 26.00%), 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 ACIC cash-secured put?
- The breakeven for the ACIC 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 ACIC market-implied 1-standard-deviation expected move is approximately 7.45%; 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 ACIC?
- Cash-secured puts on ACIC earn premium while a trader waits to acquire ACIC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ACIC.
- How does current ACIC implied volatility affect this cash-secured put?
- ACIC ATM IV is at 26.00% with IV rank near 2.51%, 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.