HRI Cash-Secured Put Strategy
HRI (Herc Holdings Inc.), in the Industrials sector, (Rental & Leasing Services industry), listed on NYSE.
Herc Holdings Inc., through its subsidiaries, operates as an equipment rental supplier in the United States and internationally. It rents aerial, earthmoving, material handling, trucks and trailers, air compressors, compaction, and lighting equipment. The company also provides ProSolutions, an industry specific solution-based services, which include power generation, climate control, remediation and restoration, pump, trench shoring, and studio and production equipment; and ProContractor professional grade tools. In addition, it offers various services, including repair, maintenance, equipment management, and safety training; and equipment re-rental and on-site support services, as well as ancillary services, such as equipment transport, rental protection, cleaning, refueling, and labor. Further, the company sells used equipment and contractor supplies, such as construction consumables, tools, small equipment, and safety supplies. It serves non-residential and residential construction, specialty trade, restoration, remediation and environment, and facility maintenance contractors; industrial manufacturing industries, including automotive and aerospace, power, metals and mining, agriculture, pulp, paper and wood, food and beverage, and refineries and petrochemical industries; infrastructure and government sectors; and commercial facilities, hospitality, healthcare, recreation, entertainment production, and special event management customers.
HRI (Herc Holdings Inc.) trades in the Industrials sector, specifically Rental & Leasing Services, with a market capitalization of approximately $4.57B, a beta of 1.91 versus the broader market, a 52-week range of 88.45-188.35, average daily share volume of 659K, a public-listing history dating back to 2006, approximately 8K full-time employees. These structural characteristics shape how HRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.91 indicates HRI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. HRI 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 HRI?
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 HRI snapshot
As of May 15, 2026, spot at $139.59, ATM IV 53.50%, IV rank 27.23%, expected move 15.34%. The cash-secured put on HRI 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 HRI specifically: HRI IV at 53.50% is on the cheap side of its 1-year range, which means a premium-selling HRI cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 15.34% (roughly $21.41 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 HRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on HRI should anchor to the underlying notional of $139.59 per share and to the trader's directional view on HRI stock.
HRI cash-secured put setup
The HRI 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 HRI near $139.59, the first option leg uses a $135.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HRI 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 HRI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $135.00 | $7.85 |
HRI cash-secured put risk and reward
- Net Premium / Debit
- +$785.00
- Max Profit (per contract)
- $785.00
- Max Loss (per contract)
- -$12,714.00
- Breakeven(s)
- $127.15
- Risk / Reward Ratio
- 0.062
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
HRI cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on HRI. 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% | -$12,714.00 |
| $30.87 | -77.9% | -$9,627.70 |
| $61.74 | -55.8% | -$6,541.40 |
| $92.60 | -33.7% | -$3,455.10 |
| $123.46 | -11.6% | -$368.79 |
| $154.33 | +10.6% | +$785.00 |
| $185.19 | +32.7% | +$785.00 |
| $216.05 | +54.8% | +$785.00 |
| $246.91 | +76.9% | +$785.00 |
| $277.78 | +99.0% | +$785.00 |
When traders use cash-secured put on HRI
Cash-secured puts on HRI earn premium while a trader waits to acquire HRI stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HRI.
HRI thesis for this cash-secured put
The market-implied 1-standard-deviation range for HRI extends from approximately $118.18 on the downside to $161.00 on the upside. A HRI cash-secured put lets a trader earn premium while waiting to acquire HRI 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 HRI IV rank near 27.23% 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 HRI at 53.50%. As a Industrials name, HRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HRI-specific events.
HRI 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. HRI positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HRI alongside the broader basket even when HRI-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on HRI carry tail risk when realized volatility exceeds the implied move; review historical HRI earnings reactions and macro stress periods before sizing. Always rebuild the position from current HRI chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on HRI?
- A cash-secured put on HRI is the cash-secured put strategy applied to HRI (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 HRI stock trading near $139.59, the strikes shown on this page are snapped to the nearest listed HRI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HRI 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 HRI cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 53.50%), the computed maximum profit is $785.00 per contract and the computed maximum loss is -$12,714.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HRI cash-secured put?
- The breakeven for the HRI cash-secured put priced on this page is roughly $127.15 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 HRI market-implied 1-standard-deviation expected move is approximately 15.34%; 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 HRI?
- Cash-secured puts on HRI earn premium while a trader waits to acquire HRI stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HRI.
- How does current HRI implied volatility affect this cash-secured put?
- HRI ATM IV is at 53.50% with IV rank near 27.23%, 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.