HBM Cash-Secured Put Strategy
HBM (Hudbay Minerals Inc.), in the Basic Materials sector, (Copper industry), listed on NYSE.
Hudbay Minerals Inc., a diversified mining company, together with its subsidiaries, focuses on the discovery, production, and marketing of base and precious metals in North and South America. It produces copper concentrates containing copper, gold, and silver; silver/gold doré; molybdenum concentrates; and zinc metals. The company owns three polymetallic mines, four ore concentrators, and a zinc production facility in northern Manitoba and Saskatchewan, Canada, as well as in Cusco, Peru; and copper projects in Arizona and Nevada, the United States. HudBay Minerals Inc. was founded in 1927 and is headquartered in Toronto, Canada.
HBM (Hudbay Minerals Inc.) trades in the Basic Materials sector, specifically Copper, with a market capitalization of approximately $11.01B, a trailing P/E of 16.74, a beta of 2.15 versus the broader market, a 52-week range of 7.94-28.74, average daily share volume of 5.8M, a public-listing history dating back to 2009, approximately 2K full-time employees. These structural characteristics shape how HBM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.15 indicates HBM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. HBM 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 HBM?
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 HBM snapshot
As of May 15, 2026, spot at $24.95, ATM IV 62.20%, IV rank 42.69%, expected move 17.83%. The cash-secured put on HBM 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 HBM specifically: HBM IV at 62.20% is mid-range versus its 1-year history, so the credit collected on a HBM cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 17.83% (roughly $4.45 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 HBM expiries trade a higher absolute premium for lower per-day decay. Position sizing on HBM should anchor to the underlying notional of $24.95 per share and to the trader's directional view on HBM stock.
HBM cash-secured put setup
The HBM 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 HBM near $24.95, the first option leg uses a $23.70 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HBM 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 HBM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $23.70 | N/A |
HBM 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.
HBM cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on HBM. 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 HBM
Cash-secured puts on HBM earn premium while a trader waits to acquire HBM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HBM.
HBM thesis for this cash-secured put
The market-implied 1-standard-deviation range for HBM extends from approximately $20.50 on the downside to $29.40 on the upside. A HBM cash-secured put lets a trader earn premium while waiting to acquire HBM 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 HBM IV rank near 42.69% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on HBM should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, HBM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HBM-specific events.
HBM 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. HBM positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HBM alongside the broader basket even when HBM-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on HBM carry tail risk when realized volatility exceeds the implied move; review historical HBM earnings reactions and macro stress periods before sizing. Always rebuild the position from current HBM chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on HBM?
- A cash-secured put on HBM is the cash-secured put strategy applied to HBM (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 HBM stock trading near $24.95, the strikes shown on this page are snapped to the nearest listed HBM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HBM 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 HBM cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 62.20%), 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 HBM cash-secured put?
- The breakeven for the HBM 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 HBM market-implied 1-standard-deviation expected move is approximately 17.83%; 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 HBM?
- Cash-secured puts on HBM earn premium while a trader waits to acquire HBM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HBM.
- How does current HBM implied volatility affect this cash-secured put?
- HBM ATM IV is at 62.20% with IV rank near 42.69%, 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.