IIPR Cash-Secured Put Strategy
IIPR (Innovative Industrial Properties, Inc.), in the Real Estate sector, (REIT - Industrial industry), listed on NYSE.
Innovative Industrial Properties, Inc. is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017.
IIPR (Innovative Industrial Properties, Inc.) trades in the Real Estate sector, specifically REIT - Industrial, with a market capitalization of approximately $1.58B, a trailing P/E of 12.82, a beta of 1.45 versus the broader market, a 52-week range of 44.58-61.395, average daily share volume of 349K, a public-listing history dating back to 2016, approximately 21 full-time employees. These structural characteristics shape how IIPR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.45 indicates IIPR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. IIPR 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 IIPR?
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 IIPR snapshot
As of May 15, 2026, spot at $54.23, ATM IV 38.60%, IV rank 5.60%, expected move 11.07%. The cash-secured put on IIPR 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 IIPR specifically: IIPR IV at 38.60% is on the cheap side of its 1-year range, which means a premium-selling IIPR cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 11.07% (roughly $6.00 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 IIPR expiries trade a higher absolute premium for lower per-day decay. Position sizing on IIPR should anchor to the underlying notional of $54.23 per share and to the trader's directional view on IIPR stock.
IIPR cash-secured put setup
The IIPR 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 IIPR near $54.23, the first option leg uses a $51.52 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IIPR 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 IIPR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $51.52 | N/A |
IIPR 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.
IIPR cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on IIPR. 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 IIPR
Cash-secured puts on IIPR earn premium while a trader waits to acquire IIPR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning IIPR.
IIPR thesis for this cash-secured put
The market-implied 1-standard-deviation range for IIPR extends from approximately $48.23 on the downside to $60.23 on the upside. A IIPR cash-secured put lets a trader earn premium while waiting to acquire IIPR 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 IIPR IV rank near 5.60% 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 IIPR at 38.60%. As a Real Estate name, IIPR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IIPR-specific events.
IIPR 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. IIPR positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IIPR alongside the broader basket even when IIPR-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on IIPR carry tail risk when realized volatility exceeds the implied move; review historical IIPR earnings reactions and macro stress periods before sizing. Always rebuild the position from current IIPR chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on IIPR?
- A cash-secured put on IIPR is the cash-secured put strategy applied to IIPR (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 IIPR stock trading near $54.23, the strikes shown on this page are snapped to the nearest listed IIPR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IIPR 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 IIPR cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 38.60%), 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 IIPR cash-secured put?
- The breakeven for the IIPR 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 IIPR market-implied 1-standard-deviation expected move is approximately 11.07%; 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 IIPR?
- Cash-secured puts on IIPR earn premium while a trader waits to acquire IIPR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning IIPR.
- How does current IIPR implied volatility affect this cash-secured put?
- IIPR ATM IV is at 38.60% with IV rank near 5.60%, 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.