IVR Cash-Secured Put Strategy
IVR (Invesco Mortgage Capital Inc.), in the Real Estate sector, (REIT - Mortgage industry), listed on NYSE.
Invesco Mortgage Capital Inc. operates as a real estate investment trust (REIT) that primarily focuses on investing in, financing, and managing mortgage-backed securities and other mortgage-related assets. It invests in residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS) that are guaranteed by a U.S. government agency or federally chartered corporation; RMBS and CMBS that are not issued or guaranteed by a U.S. government agency or federally chartered corporation; credit risk transfer securities that are unsecured obligations issued by government-sponsored enterprises; residential and commercial mortgage loans; and other real estate-related financing arrangements. Invesco Mortgage Capital Inc. has elected to be taxed as a REIT and would be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.
IVR (Invesco Mortgage Capital Inc.) trades in the Real Estate sector, specifically REIT - Mortgage, with a market capitalization of approximately $586.0M, a trailing P/E of 11.59, a beta of 1.60 versus the broader market, a 52-week range of 7.1-9.5, average daily share volume of 2.6M, a public-listing history dating back to 2009. These structural characteristics shape how IVR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.60 indicates IVR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 11.59 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. IVR 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 IVR?
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 IVR snapshot
As of May 15, 2026, spot at $7.97, ATM IV 77.00%, IV rank 15.74%, expected move 7.99%. The cash-secured put on IVR 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 IVR specifically: IVR IV at 77.00% is on the cheap side of its 1-year range, which means a premium-selling IVR cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.99% (roughly $0.64 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 IVR expiries trade a higher absolute premium for lower per-day decay. Position sizing on IVR should anchor to the underlying notional of $7.97 per share and to the trader's directional view on IVR stock.
IVR cash-secured put setup
The IVR 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 IVR near $7.97, the first option leg uses a $7.57 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IVR 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 IVR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $7.57 | N/A |
IVR 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.
IVR cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on IVR. 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 IVR
Cash-secured puts on IVR earn premium while a trader waits to acquire IVR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning IVR.
IVR thesis for this cash-secured put
The market-implied 1-standard-deviation range for IVR extends from approximately $7.33 on the downside to $8.61 on the upside. A IVR cash-secured put lets a trader earn premium while waiting to acquire IVR 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 IVR IV rank near 15.74% 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 IVR at 77.00%. As a Real Estate name, IVR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IVR-specific events.
IVR 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. IVR positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IVR alongside the broader basket even when IVR-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on IVR carry tail risk when realized volatility exceeds the implied move; review historical IVR earnings reactions and macro stress periods before sizing. Always rebuild the position from current IVR chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on IVR?
- A cash-secured put on IVR is the cash-secured put strategy applied to IVR (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 IVR stock trading near $7.97, the strikes shown on this page are snapped to the nearest listed IVR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IVR 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 IVR cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 77.00%), 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 IVR cash-secured put?
- The breakeven for the IVR 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 IVR market-implied 1-standard-deviation expected move is approximately 7.99%; 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 IVR?
- Cash-secured puts on IVR earn premium while a trader waits to acquire IVR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning IVR.
- How does current IVR implied volatility affect this cash-secured put?
- IVR ATM IV is at 77.00% with IV rank near 15.74%, 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.