HUN Cash-Secured Put Strategy
HUN (Huntsman Corporation), in the Basic Materials sector, (Chemicals industry), listed on NYSE.
Huntsman Corporation operates as a global producer and marketer of specialized organic chemical compounds. Its operations are structured across four distinct business divisions: Polyurethanes, Performance Products, Advanced Materials, and Textile Effects. The Polyurethanes division supplies a range of polyurethane-based chemicals, such as methyl diphenyl diisocyanate (MDI), polyols, thermoplastic polyurethane (TPU), propylene oxide, and methyl tertiary-butyl ether. Within Performance Products, the company produces a variety of amines and maleic anhydrides, alongside other key chemicals like ethylene oxide, propylene oxide, glycols, ethylene dichloride, caustic soda, ammonia, hydrogen, methylamines, and acrylonitrile. The Advanced Materials segment focuses on advanced polymer solutions. This includes formulations based on epoxy, acrylic, polyurethane, and acrylonitrile-butadiene, as well as high-performance thermoset resins, curing and toughening agents, carbon nanotube additives, and fundamental liquid and solid resins.
HUN (Huntsman Corporation) trades in the Basic Materials sector, specifically Chemicals, with a market capitalization of approximately $2.00B, a beta of 0.66 versus the broader market, a 52-week range of 7.3-16.09, average daily share volume of 6.1M, a public-listing history dating back to 2005, approximately 6K full-time employees. These structural characteristics shape how HUN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.66 indicates HUN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HUN 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 HUN?
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 HUN snapshot
As of June 29, 2026, spot at $10.98, ATM IV 56.90%, IV rank 23.17%, expected move 16.31%. The cash-secured put on HUN 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 53-day expiry.
Why this cash-secured put structure on HUN specifically: HUN IV at 56.90% is on the cheap side of its 1-year range, which means a premium-selling HUN cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 16.31% (roughly $1.79 on the underlying). The 53-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HUN expiries trade a higher absolute premium for lower per-day decay. Position sizing on HUN should anchor to the underlying notional of $10.98 per share and to the trader's directional view on HUN stock.
HUN cash-secured put setup
The HUN 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 HUN near $10.98, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HUN chain at a 53-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 HUN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $10.00 | $0.53 |
HUN cash-secured put risk and reward
- Net Premium / Debit
- +$52.50
- Max Profit (per contract)
- $52.50
- Max Loss (per contract)
- -$946.50
- Breakeven(s)
- $9.48
- Risk / Reward Ratio
- 0.055
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
HUN cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on HUN. 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 | -99.9% | -$946.50 |
| $2.44 | -77.8% | -$703.84 |
| $4.86 | -55.7% | -$461.17 |
| $7.29 | -33.6% | -$218.51 |
| $9.72 | -11.5% | +$24.15 |
| $12.14 | +10.6% | +$52.50 |
| $14.57 | +32.7% | +$52.50 |
| $17.00 | +54.8% | +$52.50 |
| $19.42 | +76.9% | +$52.50 |
| $21.85 | +99.0% | +$52.50 |
When traders use cash-secured put on HUN
Cash-secured puts on HUN earn premium while a trader waits to acquire HUN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HUN.
HUN thesis for this cash-secured put
The market-implied 1-standard-deviation range for HUN extends from approximately $9.19 on the downside to $12.77 on the upside. A HUN cash-secured put lets a trader earn premium while waiting to acquire HUN 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 HUN IV rank near 23.17% 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 HUN at 56.90%. As a Basic Materials name, HUN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HUN-specific events.
HUN 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. HUN positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HUN alongside the broader basket even when HUN-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on HUN carry tail risk when realized volatility exceeds the implied move; review historical HUN earnings reactions and macro stress periods before sizing. Always rebuild the position from current HUN chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on HUN?
- A cash-secured put on HUN is the cash-secured put strategy applied to HUN (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 HUN stock trading near $10.98, the strikes shown on this page are snapped to the nearest listed HUN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HUN 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 HUN cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 56.90%), the computed maximum profit is $52.50 per contract and the computed maximum loss is -$946.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HUN cash-secured put?
- The breakeven for the HUN cash-secured put priced on this page is roughly $9.48 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 HUN market-implied 1-standard-deviation expected move is approximately 16.31%; 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 HUN?
- Cash-secured puts on HUN earn premium while a trader waits to acquire HUN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning HUN.
- How does current HUN implied volatility affect this cash-secured put?
- HUN ATM IV is at 56.90% with IV rank near 23.17%, 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.