BILL Cash-Secured Put Strategy
BILL (Bill.com Holdings, Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.
Bill.com Holdings, Inc. provides cloud-based software that simplifies, digitizes, and automates back-office financial operations for small and midsize businesses worldwide. The company provides software-as-a-service, cloud-based payments, and spend management products, which allow users to automate accounts payable and accounts receivable transactions, as well as enable users to connect with their suppliers and/or customers to do business, eliminate expense reports, manage cash flows, and improve office efficiency. It also offers onboarding implementation support, and ongoing support and training services. The company serves accounting firms, financial institutions, and software companies. Bill.com Holdings, Inc. was incorporated in 2006 and is headquartered in San Jose, California.
BILL (Bill.com Holdings, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $3.98B, a beta of 1.22 versus the broader market, a 52-week range of 34.44-57.21, average daily share volume of 2.1M, a public-listing history dating back to 2019, approximately 2K full-time employees. These structural characteristics shape how BILL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places BILL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a cash-secured put on BILL?
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 BILL snapshot
As of May 15, 2026, spot at $40.31, ATM IV 60.77%, IV rank 40.02%, expected move 17.42%. The cash-secured put on BILL 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 28-day expiry.
Why this cash-secured put structure on BILL specifically: BILL IV at 60.77% is mid-range versus its 1-year history, so the credit collected on a BILL cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 17.42% (roughly $7.02 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BILL expiries trade a higher absolute premium for lower per-day decay. Position sizing on BILL should anchor to the underlying notional of $40.31 per share and to the trader's directional view on BILL stock.
BILL cash-secured put setup
The BILL 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 BILL near $40.31, the first option leg uses a $38.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BILL chain at a 28-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 BILL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $38.00 | $1.38 |
BILL cash-secured put risk and reward
- Net Premium / Debit
- +$137.50
- Max Profit (per contract)
- $137.50
- Max Loss (per contract)
- -$3,661.50
- Breakeven(s)
- $36.63
- Risk / Reward Ratio
- 0.038
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
BILL cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on BILL. 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% | -$3,661.50 |
| $8.92 | -77.9% | -$2,770.33 |
| $17.83 | -55.8% | -$1,879.17 |
| $26.74 | -33.7% | -$988.00 |
| $35.66 | -11.5% | -$96.84 |
| $44.57 | +10.6% | +$137.50 |
| $53.48 | +32.7% | +$137.50 |
| $62.39 | +54.8% | +$137.50 |
| $71.30 | +76.9% | +$137.50 |
| $80.21 | +99.0% | +$137.50 |
When traders use cash-secured put on BILL
Cash-secured puts on BILL earn premium while a trader waits to acquire BILL stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning BILL.
BILL thesis for this cash-secured put
The market-implied 1-standard-deviation range for BILL extends from approximately $33.29 on the downside to $47.33 on the upside. A BILL cash-secured put lets a trader earn premium while waiting to acquire BILL 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 BILL IV rank near 40.02% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on BILL should anchor more to the directional view and the expected-move geometry. As a Technology name, BILL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BILL-specific events.
BILL 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. BILL positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BILL alongside the broader basket even when BILL-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on BILL carry tail risk when realized volatility exceeds the implied move; review historical BILL earnings reactions and macro stress periods before sizing. Always rebuild the position from current BILL chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on BILL?
- A cash-secured put on BILL is the cash-secured put strategy applied to BILL (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 BILL stock trading near $40.31, the strikes shown on this page are snapped to the nearest listed BILL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BILL 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 BILL cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 60.77%), the computed maximum profit is $137.50 per contract and the computed maximum loss is -$3,661.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BILL cash-secured put?
- The breakeven for the BILL cash-secured put priced on this page is roughly $36.63 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 BILL market-implied 1-standard-deviation expected move is approximately 17.42%; 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 BILL?
- Cash-secured puts on BILL earn premium while a trader waits to acquire BILL stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning BILL.
- How does current BILL implied volatility affect this cash-secured put?
- BILL ATM IV is at 60.77% with IV rank near 40.02%, 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.