PHUN Cash-Secured Put Strategy
PHUN (Phunware, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Phunware, Inc., operating alongside its subsidiaries, delivers an integrated software platform designed to empower companies globally and within the United States. Its primary aim is to provide clients with the tools, solutions, and services needed to effectively engage with, manage, and ultimately generate revenue from their diverse mobile application portfolios. Central to the company's offerings is cloud-based mobile software, which is licensed to customers in the form of Software Development Kits (SDKs) for integration into existing mobile applications. These SDKs include a wide array of functionalities: Analytics: Offering valuable data on application usage and user engagement. Content Management: Enabling administrators to easily create and manage app content through a cloud-based portal. Communication Tools: Providing robust alerts, notifications, and messaging capabilities.
PHUN (Phunware, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $42.9M, a beta of 2.66 versus the broader market, a 52-week range of 1.56-3.132, average daily share volume of 131K, a public-listing history dating back to 2016, approximately 26 full-time employees. These structural characteristics shape how PHUN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.66 indicates PHUN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a cash-secured put on PHUN?
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.
PHUN snapshot
As of August 14, 2026, spot at $2.09, ATM IV 24.90%, IV rank 3.92%, expected move 7.14%. The cash-secured put on PHUN below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this cash-secured put structure on PHUN specifically: PHUN IV at 24.90% is on the cheap side of its 1-year range, which means a premium-selling PHUN cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.14% (roughly $0.15 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PHUN expiries trade a higher absolute premium for lower per-day decay. Position sizing on PHUN should anchor to the underlying notional of $2.09 per share and to the trader's directional view on PHUN stock.
PHUN cash-secured put setup
The PHUN 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 PHUN at $2.09 on that close, the first option leg uses a $1.99 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PHUN chain at a 35-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 PHUN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $1.99 | N/A |
PHUN 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.
PHUN cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on PHUN. 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 PHUN
Cash-secured puts on PHUN earn premium while a trader waits to acquire PHUN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PHUN.
PHUN thesis for this cash-secured put
The market-implied 1-standard-deviation range for PHUN extends from approximately $1.94 on the downside to $2.24 on the upside. A PHUN cash-secured put lets a trader earn premium while waiting to acquire PHUN 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 PHUN IV rank near 3.92% 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 PHUN at 24.90%. As a Technology name, PHUN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PHUN-specific events.
PHUN 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. PHUN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PHUN alongside the broader basket even when PHUN-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on PHUN carry tail risk when realized volatility exceeds the implied move; review historical PHUN earnings reactions and macro stress periods before sizing. Always rebuild the position from current PHUN chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on PHUN?
- A cash-secured put on PHUN is the cash-secured put strategy applied to PHUN (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 PHUN stock at $2.09 on the most recent close, the strikes shown on this page are snapped to the nearest listed PHUN chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PHUN 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 PHUN cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 24.90%), 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 PHUN cash-secured put?
- The breakeven for the PHUN cash-secured put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The PHUN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.14%; 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 PHUN?
- Cash-secured puts on PHUN earn premium while a trader waits to acquire PHUN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PHUN.
- How does current PHUN implied volatility affect this cash-secured put?
- PHUN ATM IV is at 24.90% with IV rank near 3.92%, 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.