HG Cash-Secured Put Strategy
HG (Hamilton Insurance Group, Ltd.), in the Financial Services sector, (Insurance - Reinsurance industry), listed on NYSE.
Hamilton Insurance Group, Ltd., through its subsidiaries, engages in underwriting specialty insurance and reinsurance risks in Bermuda and internationally. The company offers casualty reinsurance products, such as commercial motor, general liability, healthcare, multiline, personal motor, professional liability, umbrella and excess casualty, and worker's compensation and employer's liability reinsurance; property treaty reinsurance; and specialty reinsurance solutions, including accident and health, aviation, crisis management, financial lines, marine and energy, multiline specialty, and satellite reinsurance. It also provides accident and health, cyber, excess energy, environmental, financial lines, fine art and specie, kidnap and ransom, M&A, marine and energy liability, political risk, professional liability, property binders, property D&F, space, upstream energy, general and excess casualty, war and terrorism, allied medical, management liability, medical professionals, products liability and contractors, and small business casualty insurance plans. The company was incorporated in 2013 and is based in Pembroke, Bermuda with additional locations in Dublin, Ireland; London, United Kingdom; Miami, Florida; New York, New York; and Glen Allen, Virginia.
HG (Hamilton Insurance Group, Ltd.) trades in the Financial Services sector, specifically Insurance - Reinsurance, with a market capitalization of approximately $3.02B, a trailing P/E of 4.88, a beta of 0.70 versus the broader market, a 52-week range of 20.39-33.715, average daily share volume of 519K, a public-listing history dating back to 2023, approximately 600 full-time employees. These structural characteristics shape how HG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.70 indicates HG 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 4.88 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. HG 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 HG?
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 HG snapshot
As of May 15, 2026, spot at $31.89, ATM IV 34.30%, IV rank 18.59%, expected move 9.83%. The cash-secured put on HG 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 HG specifically: HG IV at 34.30% is on the cheap side of its 1-year range, which means a premium-selling HG cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.83% (roughly $3.14 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 HG expiries trade a higher absolute premium for lower per-day decay. Position sizing on HG should anchor to the underlying notional of $31.89 per share and to the trader's directional view on HG stock.
HG cash-secured put setup
The HG 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 HG near $31.89, the first option leg uses a $30.30 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HG 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 HG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $30.30 | N/A |
HG 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.
HG cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on HG. 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 HG
Cash-secured puts on HG earn premium while a trader waits to acquire HG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HG.
HG thesis for this cash-secured put
The market-implied 1-standard-deviation range for HG extends from approximately $28.75 on the downside to $35.03 on the upside. A HG cash-secured put lets a trader earn premium while waiting to acquire HG 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 HG IV rank near 18.59% 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 HG at 34.30%. As a Financial Services name, HG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HG-specific events.
HG 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. HG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HG alongside the broader basket even when HG-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on HG carry tail risk when realized volatility exceeds the implied move; review historical HG earnings reactions and macro stress periods before sizing. Always rebuild the position from current HG chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on HG?
- A cash-secured put on HG is the cash-secured put strategy applied to HG (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 HG stock trading near $31.89, the strikes shown on this page are snapped to the nearest listed HG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HG 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 HG cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 34.30%), 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 HG cash-secured put?
- The breakeven for the HG 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 HG market-implied 1-standard-deviation expected move is approximately 9.83%; 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 HG?
- Cash-secured puts on HG earn premium while a trader waits to acquire HG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HG.
- How does current HG implied volatility affect this cash-secured put?
- HG ATM IV is at 34.30% with IV rank near 18.59%, 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.