HSIC Cash-Secured Put Strategy
HSIC (Henry Schein, Inc.), in the Healthcare sector, (Medical - Distribution industry), listed on NASDAQ.
Henry Schein, Inc. provides health care products and services to dental practitioners and laboratories, physician practices, government, institutional health care clinics, and other alternate care clinics worldwide. It operates through two segments, Health Care Distribution, and Technology and Value-Added Services. The Health Care Distribution segment offers dental products, including infection-control products, handpieces, preventatives, impression materials, composites, anesthetics, teeth, dental implants, gypsum, acrylics, articulators, abrasives, dental chairs, delivery units and lights, X-ray supplies and equipment, personal protective equipment, and high-tech and digital restoration equipment, as well as equipment repair services. This segment also provides medical products comprising branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, X-ray products, equipment, and vitamins. The Technology and Value-Added Services segment offers software, technology, and other value-added services that include practice management software systems for dental and medical practitioners. This segment also provides value-added practice solutions, which comprise financial services on a non-recourse basis, e-services, practice technology, network, and hardware services, as well as continuing education services for practitioners, and consulting and other services.
HSIC (Henry Schein, Inc.) trades in the Healthcare sector, specifically Medical - Distribution, with a market capitalization of approximately $7.91B, a trailing P/E of 20.21, a beta of 0.82 versus the broader market, a 52-week range of 61.95-89.29, average daily share volume of 1.4M, a public-listing history dating back to 1995, approximately 25K full-time employees. These structural characteristics shape how HSIC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places HSIC 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 HSIC?
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 HSIC snapshot
As of May 15, 2026, spot at $73.06, ATM IV 31.60%, IV rank 6.91%, expected move 9.06%. The cash-secured put on HSIC 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 HSIC specifically: HSIC IV at 31.60% is on the cheap side of its 1-year range, which means a premium-selling HSIC cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.06% (roughly $6.62 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 HSIC expiries trade a higher absolute premium for lower per-day decay. Position sizing on HSIC should anchor to the underlying notional of $73.06 per share and to the trader's directional view on HSIC stock.
HSIC cash-secured put setup
The HSIC 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 HSIC near $73.06, the first option leg uses a $69.41 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HSIC 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 HSIC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $69.41 | N/A |
HSIC 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.
HSIC cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on HSIC. 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 HSIC
Cash-secured puts on HSIC earn premium while a trader waits to acquire HSIC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HSIC.
HSIC thesis for this cash-secured put
The market-implied 1-standard-deviation range for HSIC extends from approximately $66.44 on the downside to $79.68 on the upside. A HSIC cash-secured put lets a trader earn premium while waiting to acquire HSIC 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 HSIC IV rank near 6.91% 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 HSIC at 31.60%. As a Healthcare name, HSIC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HSIC-specific events.
HSIC 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. HSIC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HSIC alongside the broader basket even when HSIC-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on HSIC carry tail risk when realized volatility exceeds the implied move; review historical HSIC earnings reactions and macro stress periods before sizing. Always rebuild the position from current HSIC chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on HSIC?
- A cash-secured put on HSIC is the cash-secured put strategy applied to HSIC (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 HSIC stock trading near $73.06, the strikes shown on this page are snapped to the nearest listed HSIC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HSIC 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 HSIC cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 31.60%), 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 HSIC cash-secured put?
- The breakeven for the HSIC 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 HSIC market-implied 1-standard-deviation expected move is approximately 9.06%; 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 HSIC?
- Cash-secured puts on HSIC earn premium while a trader waits to acquire HSIC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HSIC.
- How does current HSIC implied volatility affect this cash-secured put?
- HSIC ATM IV is at 31.60% with IV rank near 6.91%, 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.