HPP Cash-Secured Put Strategy
HPP (Hudson Pacific Properties, Inc.), in the Real Estate sector, (REIT - Office industry), listed on NYSE.
Hudson Pacific is a real estate investment trust with a portfolio of office and studio properties totaling nearly 19 million square feet, including land for development. Focused on premier West Coast epicenters of innovation, media and technology, its anchor tenants include Fortune 500 and leading growth companies such as Netflix, Google, Square, Uber, NFL Enterprises and more. Hudson Pacific is publicly traded on the NYSE under the symbol HPP, and listed as a component of the S&P MidCap 400 Index.
HPP (Hudson Pacific Properties, Inc.) trades in the Real Estate sector, specifically REIT - Office, with a market capitalization of approximately $629.2M, a beta of 1.88 versus the broader market, a 52-week range of 5.26-21.7, average daily share volume of 1.3M, a public-listing history dating back to 2010, approximately 740 full-time employees. These structural characteristics shape how HPP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.88 indicates HPP has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. HPP 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 HPP?
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 HPP snapshot
As of May 15, 2026, spot at $11.41, ATM IV 91.20%, IV rank 23.93%, expected move 26.15%. The cash-secured put on HPP 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 HPP specifically: HPP IV at 91.20% is on the cheap side of its 1-year range, which means a premium-selling HPP cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 26.15% (roughly $2.98 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 HPP expiries trade a higher absolute premium for lower per-day decay. Position sizing on HPP should anchor to the underlying notional of $11.41 per share and to the trader's directional view on HPP stock.
HPP cash-secured put setup
The HPP 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 HPP near $11.41, the first option leg uses a $10.84 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HPP 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 HPP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $10.84 | N/A |
HPP 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.
HPP cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on HPP. 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 HPP
Cash-secured puts on HPP earn premium while a trader waits to acquire HPP stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HPP.
HPP thesis for this cash-secured put
The market-implied 1-standard-deviation range for HPP extends from approximately $8.43 on the downside to $14.39 on the upside. A HPP cash-secured put lets a trader earn premium while waiting to acquire HPP 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 HPP IV rank near 23.93% 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 HPP at 91.20%. As a Real Estate name, HPP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HPP-specific events.
HPP 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. HPP positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HPP alongside the broader basket even when HPP-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on HPP carry tail risk when realized volatility exceeds the implied move; review historical HPP earnings reactions and macro stress periods before sizing. Always rebuild the position from current HPP chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on HPP?
- A cash-secured put on HPP is the cash-secured put strategy applied to HPP (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 HPP stock trading near $11.41, the strikes shown on this page are snapped to the nearest listed HPP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HPP 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 HPP cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 91.20%), 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 HPP cash-secured put?
- The breakeven for the HPP 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 HPP market-implied 1-standard-deviation expected move is approximately 26.15%; 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 HPP?
- Cash-secured puts on HPP earn premium while a trader waits to acquire HPP stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HPP.
- How does current HPP implied volatility affect this cash-secured put?
- HPP ATM IV is at 91.20% with IV rank near 23.93%, 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.