HP Cash-Secured Put Strategy
HP (Helmerich & Payne, Inc.), in the Energy sector, (Oil & Gas Drilling industry), listed on NYSE.
Helmerich & Payne, Inc., along with its affiliated companies, provides specialized drilling services and innovative solutions to businesses involved in the exploration and production of oil and gas. The company's operations are strategically organized into three distinct divisions: North America Solutions, Offshore Gulf of Mexico, and International Solutions. Within the North America Solutions segment, primary drilling activities are conducted across a broad geographical area, encompassing U.S. states such as Colorado, Louisiana, Montana, Nevada, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas, Utah, West Virginia, and Wyoming. This division also actively pursues the development, promotion, and commercialization of advanced technologies designed to enhance drilling efficiency, wellbore quality, and accurate placement. The Offshore Gulf of Mexico segment focuses its drilling endeavors in Louisiana and within the federal waters of the U.S. Gulf of Mexico.
HP (Helmerich & Payne, Inc.) trades in the Energy sector, specifically Oil & Gas Drilling, with a market capitalization of approximately $3.38B, a beta of 0.57 versus the broader market, a 52-week range of 15.08-41.82, average daily share volume of 1.2M, a public-listing history dating back to 1980, approximately 7K full-time employees. These structural characteristics shape how HP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.57 indicates HP has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HP 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 HP?
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 HP snapshot
As of June 30, 2026, spot at $32.97, ATM IV 46.60%, IV rank 30.14%, expected move 13.36%. The cash-secured put on HP 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 171-day expiry.
Why this cash-secured put structure on HP specifically: HP IV at 46.60% is mid-range versus its 1-year history, so the credit collected on a HP cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 13.36% (roughly $4.40 on the underlying). The 171-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HP expiries trade a higher absolute premium for lower per-day decay. Position sizing on HP should anchor to the underlying notional of $32.97 per share and to the trader's directional view on HP stock.
HP cash-secured put setup
The HP 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 HP near $32.97, the first option leg uses a $32.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HP chain at a 171-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 HP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $32.50 | $3.80 |
HP cash-secured put risk and reward
- Net Premium / Debit
- +$380.00
- Max Profit (per contract)
- $380.00
- Max Loss (per contract)
- -$2,869.00
- Breakeven(s)
- $28.70
- Risk / Reward Ratio
- 0.132
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
HP cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on HP. 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% | -$2,869.00 |
| $7.30 | -77.9% | -$2,140.13 |
| $14.59 | -55.8% | -$1,411.25 |
| $21.88 | -33.6% | -$682.38 |
| $29.16 | -11.5% | +$46.50 |
| $36.45 | +10.6% | +$380.00 |
| $43.74 | +32.7% | +$380.00 |
| $51.03 | +54.8% | +$380.00 |
| $58.32 | +76.9% | +$380.00 |
| $65.61 | +99.0% | +$380.00 |
When traders use cash-secured put on HP
Cash-secured puts on HP earn premium while a trader waits to acquire HP stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HP.
HP thesis for this cash-secured put
The market-implied 1-standard-deviation range for HP extends from approximately $28.57 on the downside to $37.37 on the upside. A HP cash-secured put lets a trader earn premium while waiting to acquire HP 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 HP IV rank near 30.14% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on HP should anchor more to the directional view and the expected-move geometry. As a Energy name, HP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HP-specific events.
HP 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. HP positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HP alongside the broader basket even when HP-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on HP carry tail risk when realized volatility exceeds the implied move; review historical HP earnings reactions and macro stress periods before sizing. Always rebuild the position from current HP chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on HP?
- A cash-secured put on HP is the cash-secured put strategy applied to HP (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 HP stock trading near $32.97, the strikes shown on this page are snapped to the nearest listed HP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HP 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 HP cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 46.60%), the computed maximum profit is $380.00 per contract and the computed maximum loss is -$2,869.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HP cash-secured put?
- The breakeven for the HP cash-secured put priced on this page is roughly $28.70 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 HP market-implied 1-standard-deviation expected move is approximately 13.36%; 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 HP?
- Cash-secured puts on HP earn premium while a trader waits to acquire HP stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HP.
- How does current HP implied volatility affect this cash-secured put?
- HP ATM IV is at 46.60% with IV rank near 30.14%, 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.