HGTY Cash-Secured Put Strategy

HGTY (Hagerty, Inc.), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NYSE.

Hagerty, Inc. provides insurance agency services worldwide. It offers automobile and boat insurance products; and reinsurance products. The company also provides Hagerty Media, which publishes contents through the HDC Magazine, video content, YouTube channel; HDC that offers subscription based products and services, including HDC Magazine, automotive enthusiast events, proprietary vehicle valuation tools, emergency roadside services, and special vehicle-related discounts; HVT, a valuation tool used by the customer to access current and historic pricing data of collector car, truck, SUV, and motorcycle models; and Hagerty Events, an eclectic mix of small and large events. In addition, it offers DriveShare, a peer-to-peer rental platform for collector and cool vehicles; Motorsport Reg, a motorsport membership, licensing, and event online management system that automates event listings, registration, and payment processing for various motorsport events; and Hagerty Garage + Social, a platform that provides clubhouses and car storage facilities. The company is headquartered in Traverse City, Michigan.

HGTY (Hagerty, Inc.) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $3.53B, a trailing P/E of 28.73, a beta of 0.83 versus the broader market, a 52-week range of 8.81-14, average daily share volume of 168K, a public-listing history dating back to 2021, approximately 2K full-time employees. These structural characteristics shape how HGTY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.83 places HGTY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a cash-secured put on HGTY?

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 HGTY snapshot

As of May 15, 2026, spot at $10.37, ATM IV 70.40%, IV rank 14.11%, expected move 20.18%. The cash-secured put on HGTY 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 HGTY specifically: HGTY IV at 70.40% is on the cheap side of its 1-year range, which means a premium-selling HGTY cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 20.18% (roughly $2.09 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 HGTY expiries trade a higher absolute premium for lower per-day decay. Position sizing on HGTY should anchor to the underlying notional of $10.37 per share and to the trader's directional view on HGTY stock.

HGTY cash-secured put setup

The HGTY 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 HGTY near $10.37, the first option leg uses a $9.85 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HGTY 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 HGTY shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$9.85N/A

HGTY 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.

HGTY cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on HGTY. 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 HGTY

Cash-secured puts on HGTY earn premium while a trader waits to acquire HGTY stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HGTY.

HGTY thesis for this cash-secured put

The market-implied 1-standard-deviation range for HGTY extends from approximately $8.28 on the downside to $12.46 on the upside. A HGTY cash-secured put lets a trader earn premium while waiting to acquire HGTY 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 HGTY IV rank near 14.11% 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 HGTY at 70.40%. As a Financial Services name, HGTY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HGTY-specific events.

HGTY 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. HGTY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HGTY alongside the broader basket even when HGTY-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on HGTY carry tail risk when realized volatility exceeds the implied move; review historical HGTY earnings reactions and macro stress periods before sizing. Always rebuild the position from current HGTY chain quotes before placing a trade.

Frequently asked questions

What is a cash-secured put on HGTY?
A cash-secured put on HGTY is the cash-secured put strategy applied to HGTY (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 HGTY stock trading near $10.37, the strikes shown on this page are snapped to the nearest listed HGTY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HGTY 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 HGTY cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 70.40%), 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 HGTY cash-secured put?
The breakeven for the HGTY 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 HGTY market-implied 1-standard-deviation expected move is approximately 20.18%; 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 HGTY?
Cash-secured puts on HGTY earn premium while a trader waits to acquire HGTY stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HGTY.
How does current HGTY implied volatility affect this cash-secured put?
HGTY ATM IV is at 70.40% with IV rank near 14.11%, 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.

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