FHN Cash-Secured Put Strategy
FHN (First Horizon Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through three segments: Regional Banking, Specialty Banking, and Corporate. It offers general banking services for consumers, businesses, financial institutions, and governments. The company also underwrites bank-eligible securities and other fixed-income securities eligible for underwriting by financial subsidiaries; sells loans and derivatives; and offers advisory services. In addition, it offers various services, such as mortgage banking; title insurance and loan-closing; brokerage; correspondent banking; nationwide check clearing and remittance processing; trust, fiduciary, and agency; equipment finance; and investment and financial advisory services. Further, the company sells mutual fund and retail insurance products; and credit cards.
FHN (First Horizon Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $11.12B, a trailing P/E of 10.95, a beta of 0.63 versus the broader market, a 52-week range of 19.04-26.56, average daily share volume of 5.2M, a public-listing history dating back to 1980, approximately 7K full-time employees. These structural characteristics shape how FHN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.63 indicates FHN 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 10.95 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. FHN 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 FHN?
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 FHN snapshot
As of May 15, 2026, spot at $23.59, ATM IV 28.00%, IV rank 17.19%, expected move 8.03%. The cash-secured put on FHN 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 98-day expiry.
Why this cash-secured put structure on FHN specifically: FHN IV at 28.00% is on the cheap side of its 1-year range, which means a premium-selling FHN cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.03% (roughly $1.89 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FHN expiries trade a higher absolute premium for lower per-day decay. Position sizing on FHN should anchor to the underlying notional of $23.59 per share and to the trader's directional view on FHN stock.
FHN cash-secured put setup
The FHN 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 FHN near $23.59, the first option leg uses a $22.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FHN chain at a 98-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 FHN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $22.00 | $0.80 |
FHN cash-secured put risk and reward
- Net Premium / Debit
- +$80.00
- Max Profit (per contract)
- $80.00
- Max Loss (per contract)
- -$2,119.00
- Breakeven(s)
- $21.20
- 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.
FHN cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on FHN. 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% | -$2,119.00 |
| $5.22 | -77.9% | -$1,597.52 |
| $10.44 | -55.7% | -$1,076.05 |
| $15.65 | -33.6% | -$554.57 |
| $20.87 | -11.5% | -$33.09 |
| $26.08 | +10.6% | +$80.00 |
| $31.30 | +32.7% | +$80.00 |
| $36.51 | +54.8% | +$80.00 |
| $41.73 | +76.9% | +$80.00 |
| $46.94 | +99.0% | +$80.00 |
When traders use cash-secured put on FHN
Cash-secured puts on FHN earn premium while a trader waits to acquire FHN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FHN.
FHN thesis for this cash-secured put
The market-implied 1-standard-deviation range for FHN extends from approximately $21.70 on the downside to $25.48 on the upside. A FHN cash-secured put lets a trader earn premium while waiting to acquire FHN 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 FHN IV rank near 17.19% 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 FHN at 28.00%. As a Financial Services name, FHN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FHN-specific events.
FHN 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. FHN positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FHN alongside the broader basket even when FHN-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on FHN carry tail risk when realized volatility exceeds the implied move; review historical FHN earnings reactions and macro stress periods before sizing. Always rebuild the position from current FHN chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on FHN?
- A cash-secured put on FHN is the cash-secured put strategy applied to FHN (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 FHN stock trading near $23.59, the strikes shown on this page are snapped to the nearest listed FHN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FHN 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 FHN cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 28.00%), the computed maximum profit is $80.00 per contract and the computed maximum loss is -$2,119.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FHN cash-secured put?
- The breakeven for the FHN cash-secured put priced on this page is roughly $21.20 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 FHN market-implied 1-standard-deviation expected move is approximately 8.03%; 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 FHN?
- Cash-secured puts on FHN earn premium while a trader waits to acquire FHN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FHN.
- How does current FHN implied volatility affect this cash-secured put?
- FHN ATM IV is at 28.00% with IV rank near 17.19%, 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.