GPMT Cash-Secured Put Strategy
GPMT (Granite Point Mortgage Trust Inc.), in the Real Estate sector, (REIT - Mortgage industry), listed on NYSE.
Granite Point Mortgage Trust Inc., a real estate investment trust, originates, invests in, and manages senior floating-rate commercial mortgage loans, and other debt and debt-like commercial real estate investments in the United States. The company provides intermediate-term bridge or transitional financing for various purposes, including acquisitions, recapitalizations, and refinancing, as well as a range of business plans, including lease-up, renovation, repositioning, and repurposing of the commercial property. As of December 31, 2021, its investment portfolio includes 105 commercial real estate loan investments. Granite Point Mortgage Trust Inc. was founded in 2015 and is headquartered in New York, New York.
GPMT (Granite Point Mortgage Trust Inc.) trades in the Real Estate sector, specifically REIT - Mortgage, with a market capitalization of approximately $63.7M, a beta of 1.66 versus the broader market, a 52-week range of 1.24-3.115, average daily share volume of 176K, a public-listing history dating back to 2017, approximately 33 full-time employees. These structural characteristics shape how GPMT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.66 indicates GPMT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. GPMT 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 GPMT?
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 GPMT snapshot
As of May 15, 2026, spot at $1.38, ATM IV 25.00%, IV rank 1.28%, expected move 7.17%. The cash-secured put on GPMT 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 GPMT specifically: GPMT IV at 25.00% is on the cheap side of its 1-year range, which means a premium-selling GPMT cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.17% (roughly $0.10 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 GPMT expiries trade a higher absolute premium for lower per-day decay. Position sizing on GPMT should anchor to the underlying notional of $1.38 per share and to the trader's directional view on GPMT stock.
GPMT cash-secured put setup
The GPMT 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 GPMT near $1.38, the first option leg uses a $1.31 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GPMT 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 GPMT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $1.31 | N/A |
GPMT 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.
GPMT cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on GPMT. 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 GPMT
Cash-secured puts on GPMT earn premium while a trader waits to acquire GPMT stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GPMT.
GPMT thesis for this cash-secured put
The market-implied 1-standard-deviation range for GPMT extends from approximately $1.28 on the downside to $1.48 on the upside. A GPMT cash-secured put lets a trader earn premium while waiting to acquire GPMT 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 GPMT IV rank near 1.28% 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 GPMT at 25.00%. As a Real Estate name, GPMT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GPMT-specific events.
GPMT 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. GPMT positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GPMT alongside the broader basket even when GPMT-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on GPMT carry tail risk when realized volatility exceeds the implied move; review historical GPMT earnings reactions and macro stress periods before sizing. Always rebuild the position from current GPMT chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on GPMT?
- A cash-secured put on GPMT is the cash-secured put strategy applied to GPMT (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 GPMT stock trading near $1.38, the strikes shown on this page are snapped to the nearest listed GPMT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GPMT 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 GPMT cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 25.00%), 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 GPMT cash-secured put?
- The breakeven for the GPMT 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 GPMT market-implied 1-standard-deviation expected move is approximately 7.17%; 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 GPMT?
- Cash-secured puts on GPMT earn premium while a trader waits to acquire GPMT stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning GPMT.
- How does current GPMT implied volatility affect this cash-secured put?
- GPMT ATM IV is at 25.00% with IV rank near 1.28%, 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.