CB Cash-Secured Put Strategy
CB (Chubb Limited), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NYSE.
Chubb Limited provides insurance and reinsurance products worldwide. The company's North America Commercial P&C Insurance segment offers commercial property, casualty, workers' compensation, package policies, risk management, financial lines, marine, construction, environmental, medical, cyber risk, surety, and excess casualty; and group accident and health insurance to large, middle market, and small commercial businesses. Its North America Personal P&C Insurance segment provides affluent and high net worth individuals and families with homeowners, automobile and collector cars, valuable articles, personal and excess liability, travel insurance, and recreational marine insurance and services. The company's North America Agricultural Insurance segment offers multiple peril crop and crop-hail insurance; and coverage for farm and ranch property, and commercial agriculture products. Its Overseas General Insurance segment provides coverage for traditional commercial property and casualty; specialty categories, such as financial lines, marine, energy, aviation, political risk, and construction risk; and group accident and health, and traditional and specialty personal lines for corporations, middle markets, and small customers through retail brokers, agents, and other channels. The company's Global Reinsurance segment offers traditional and specialty reinsurance under the Chubb Tempest Re brand to property and casualty companies.
CB (Chubb Limited) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $122.57B, a trailing P/E of 11.04, a beta of 0.44 versus the broader market, a 52-week range of 264.1-345.67, average daily share volume of 1.7M, a public-listing history dating back to 1993, approximately 43K full-time employees. These structural characteristics shape how CB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.44 indicates CB 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 11.04 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. CB 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 CB?
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 CB snapshot
As of May 15, 2026, spot at $324.12, ATM IV 19.40%, IV rank 50.55%, expected move 5.56%. The cash-secured put on CB 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 CB specifically: CB IV at 19.40% is mid-range versus its 1-year history, so the credit collected on a CB cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 5.56% (roughly $18.03 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 CB expiries trade a higher absolute premium for lower per-day decay. Position sizing on CB should anchor to the underlying notional of $324.12 per share and to the trader's directional view on CB stock.
CB cash-secured put setup
The CB 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 CB near $324.12, the first option leg uses a $310.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CB 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 CB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $310.00 | $2.85 |
CB cash-secured put risk and reward
- Net Premium / Debit
- +$285.00
- Max Profit (per contract)
- $285.00
- Max Loss (per contract)
- -$30,714.00
- Breakeven(s)
- $307.15
- Risk / Reward Ratio
- 0.009
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
CB cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on CB. 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% | -$30,714.00 |
| $71.67 | -77.9% | -$23,547.64 |
| $143.34 | -55.8% | -$16,381.28 |
| $215.00 | -33.7% | -$9,214.91 |
| $286.66 | -11.6% | -$2,048.55 |
| $358.33 | +10.6% | +$285.00 |
| $429.99 | +32.7% | +$285.00 |
| $501.66 | +54.8% | +$285.00 |
| $573.32 | +76.9% | +$285.00 |
| $644.98 | +99.0% | +$285.00 |
When traders use cash-secured put on CB
Cash-secured puts on CB earn premium while a trader waits to acquire CB stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CB.
CB thesis for this cash-secured put
The market-implied 1-standard-deviation range for CB extends from approximately $306.09 on the downside to $342.15 on the upside. A CB cash-secured put lets a trader earn premium while waiting to acquire CB 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 CB IV rank near 50.55% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on CB should anchor more to the directional view and the expected-move geometry. As a Financial Services name, CB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CB-specific events.
CB 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. CB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CB alongside the broader basket even when CB-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on CB carry tail risk when realized volatility exceeds the implied move; review historical CB earnings reactions and macro stress periods before sizing. Always rebuild the position from current CB chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on CB?
- A cash-secured put on CB is the cash-secured put strategy applied to CB (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 CB stock trading near $324.12, the strikes shown on this page are snapped to the nearest listed CB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CB 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 CB cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 19.40%), the computed maximum profit is $285.00 per contract and the computed maximum loss is -$30,714.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CB cash-secured put?
- The breakeven for the CB cash-secured put priced on this page is roughly $307.15 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 CB market-implied 1-standard-deviation expected move is approximately 5.56%; 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 CB?
- Cash-secured puts on CB earn premium while a trader waits to acquire CB stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CB.
- How does current CB implied volatility affect this cash-secured put?
- CB ATM IV is at 19.40% with IV rank near 50.55%, 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.