HRTG Cash-Secured Put Strategy
HRTG (Heritage Insurance Holdings, Inc.), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NYSE.
Heritage Insurance Holdings, Inc. (HRTG) operates through its subsidiaries, specializing in providing comprehensive insurance products for both personal and commercial residential properties. For individual policyholders, the company offers personal residential property coverage, which includes policies for single-family homeowners, condominium owners, and rental properties. This extensive personal coverage is available across seventeen U.S. states: Alabama, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Maryland, Massachusetts, Mississippi, New Jersey, New York, North Carolina, Rhode Island, South Carolina, and Virginia. Additionally, Heritage provides specific personal residential and wind-only property insurance options. In the commercial sector, Heritage delivers residential insurance solutions tailored for properties located in Florida, New Jersey, and New York. The company also holds a licensing credential in the state of Pennsylvania.
HRTG (Heritage Insurance Holdings, Inc.) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $784.8M, a trailing P/E of 3.94, a beta of 0.92 versus the broader market, a 52-week range of 16.825-31.98, average daily share volume of 439K, a public-listing history dating back to 2014, approximately 540 full-time employees. These structural characteristics shape how HRTG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places HRTG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 3.94 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a cash-secured put on HRTG?
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 HRTG snapshot
As of June 30, 2026, spot at $26.23, ATM IV 45.90%, IV rank 8.07%, expected move 13.16%. The cash-secured put on HRTG 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 17-day expiry.
Why this cash-secured put structure on HRTG specifically: HRTG IV at 45.90% is on the cheap side of its 1-year range, which means a premium-selling HRTG cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 13.16% (roughly $3.45 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HRTG expiries trade a higher absolute premium for lower per-day decay. Position sizing on HRTG should anchor to the underlying notional of $26.23 per share and to the trader's directional view on HRTG stock.
HRTG cash-secured put setup
The HRTG 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 HRTG near $26.23, the first option leg uses a $24.92 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HRTG chain at a 17-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 HRTG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $24.92 | N/A |
HRTG 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.
HRTG cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on HRTG. 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 HRTG
Cash-secured puts on HRTG earn premium while a trader waits to acquire HRTG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HRTG.
HRTG thesis for this cash-secured put
The market-implied 1-standard-deviation range for HRTG extends from approximately $22.78 on the downside to $29.68 on the upside. A HRTG cash-secured put lets a trader earn premium while waiting to acquire HRTG 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 HRTG IV rank near 8.07% 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 HRTG at 45.90%. As a Financial Services name, HRTG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HRTG-specific events.
HRTG 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. HRTG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HRTG alongside the broader basket even when HRTG-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on HRTG carry tail risk when realized volatility exceeds the implied move; review historical HRTG earnings reactions and macro stress periods before sizing. Always rebuild the position from current HRTG chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on HRTG?
- A cash-secured put on HRTG is the cash-secured put strategy applied to HRTG (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 HRTG stock trading near $26.23, the strikes shown on this page are snapped to the nearest listed HRTG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HRTG 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 HRTG cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 45.90%), 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 HRTG cash-secured put?
- The breakeven for the HRTG 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 HRTG market-implied 1-standard-deviation expected move is approximately 13.16%; 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 HRTG?
- Cash-secured puts on HRTG earn premium while a trader waits to acquire HRTG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HRTG.
- How does current HRTG implied volatility affect this cash-secured put?
- HRTG ATM IV is at 45.90% with IV rank near 8.07%, 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.