NMIH Cash-Secured Put Strategy

NMIH (NMI Holdings, Inc.), in the Financial Services sector, (Insurance - Specialty industry), listed on NASDAQ.

NMI Holdings, Inc. provides private mortgage guaranty insurance services in the United States. The company offers mortgage insurance services; and outsourced loan review services to mortgage loan originators. It serves national and regional mortgage banks, money center banks, credit unions, community banks, builder-owned mortgage lenders, internet-sourced lenders, and other non-bank lenders. NMI Holdings, Inc. was incorporated in 2011 and is headquartered in Emeryville, California.

NMIH (NMI Holdings, Inc.) trades in the Financial Services sector, specifically Insurance - Specialty, with a market capitalization of approximately $2.82B, a trailing P/E of 7.32, a beta of 0.59 versus the broader market, a 52-week range of 34.84-43.2, average daily share volume of 473K, a public-listing history dating back to 2013, approximately 230 full-time employees. These structural characteristics shape how NMIH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.59 indicates NMIH has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 7.32 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 NMIH?

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 NMIH snapshot

As of May 15, 2026, spot at $37.59, ATM IV 37.20%, IV rank 13.38%, expected move 10.66%. The cash-secured put on NMIH 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 NMIH specifically: NMIH IV at 37.20% is on the cheap side of its 1-year range, which means a premium-selling NMIH cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.66% (roughly $4.01 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 NMIH expiries trade a higher absolute premium for lower per-day decay. Position sizing on NMIH should anchor to the underlying notional of $37.59 per share and to the trader's directional view on NMIH stock.

NMIH cash-secured put setup

The NMIH 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 NMIH near $37.59, the first option leg uses a $35.71 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NMIH 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 NMIH shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$35.71N/A

NMIH 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.

NMIH cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on NMIH. 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 NMIH

Cash-secured puts on NMIH earn premium while a trader waits to acquire NMIH stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NMIH.

NMIH thesis for this cash-secured put

The market-implied 1-standard-deviation range for NMIH extends from approximately $33.58 on the downside to $41.60 on the upside. A NMIH cash-secured put lets a trader earn premium while waiting to acquire NMIH 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 NMIH IV rank near 13.38% 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 NMIH at 37.20%. As a Financial Services name, NMIH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NMIH-specific events.

NMIH 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. NMIH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NMIH alongside the broader basket even when NMIH-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on NMIH carry tail risk when realized volatility exceeds the implied move; review historical NMIH earnings reactions and macro stress periods before sizing. Always rebuild the position from current NMIH chain quotes before placing a trade.

Frequently asked questions

What is a cash-secured put on NMIH?
A cash-secured put on NMIH is the cash-secured put strategy applied to NMIH (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 NMIH stock trading near $37.59, the strikes shown on this page are snapped to the nearest listed NMIH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NMIH 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 NMIH cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 37.20%), 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 NMIH cash-secured put?
The breakeven for the NMIH 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 NMIH market-implied 1-standard-deviation expected move is approximately 10.66%; 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 NMIH?
Cash-secured puts on NMIH earn premium while a trader waits to acquire NMIH stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NMIH.
How does current NMIH implied volatility affect this cash-secured put?
NMIH ATM IV is at 37.20% with IV rank near 13.38%, 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.

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