PRA Cash-Secured Put Strategy
PRA (ProAssurance Corporation), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NYSE.
ProAssurance Corporation, through its subsidiaries, provides property and casualty insurance, and reinsurance products in the United States. The company operates through Specialty Property and Casualty, Workers' Compensation Insurance, Segregated Portfolio Cell Reinsurance, and Lloyd's Syndicate segments. It offers professional liability insurance for healthcare providers and institutions, and attorneys; liability insurance for medical technology and life sciences risks; and workers' compensation insurance, such as guaranteed cost policies, policyholder dividend policies, retrospectively rated policies, and deductible policies, as well as alternative market solutions that include program design, fronting, claims administration, risk management, SPC rental, asset management, and SPC management services for individual companies, agencies, groups, and associations. The company also participates in Lloyd's of London Syndicate 1729, which underwrites property and casualty insurance, and reinsurance. It markets its products through independent agencies and brokers, as well as an internal sales force. The company was founded in 1976 and is headquartered in Birmingham, Alabama.
PRA (ProAssurance Corporation) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $1.27B, a trailing P/E of 19.43, a beta of 0.05 versus the broader market, a 52-week range of 22.72-24.85, average daily share volume of 797K, a public-listing history dating back to 1991, approximately 1K full-time employees. These structural characteristics shape how PRA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.05 indicates PRA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a cash-secured put on PRA?
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 PRA snapshot
As of May 14, 2026, spot at $24.61, ATM IV 46.30%, IV rank 37.30%, expected move 13.27%. The cash-secured put on PRA 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 35-day expiry.
Why this cash-secured put structure on PRA specifically: PRA IV at 46.30% is mid-range versus its 1-year history, so the credit collected on a PRA cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 13.27% (roughly $3.27 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 PRA expiries trade a higher absolute premium for lower per-day decay. Position sizing on PRA should anchor to the underlying notional of $24.61 per share and to the trader's directional view on PRA stock.
PRA cash-secured put setup
The PRA 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 PRA near $24.61, the first option leg uses a $23.38 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PRA 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 PRA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $23.38 | N/A |
PRA 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.
PRA cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on PRA. 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 PRA
Cash-secured puts on PRA earn premium while a trader waits to acquire PRA stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PRA.
PRA thesis for this cash-secured put
The market-implied 1-standard-deviation range for PRA extends from approximately $21.34 on the downside to $27.88 on the upside. A PRA cash-secured put lets a trader earn premium while waiting to acquire PRA 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 PRA IV rank near 37.30% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on PRA should anchor more to the directional view and the expected-move geometry. As a Financial Services name, PRA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PRA-specific events.
PRA 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. PRA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PRA alongside the broader basket even when PRA-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on PRA carry tail risk when realized volatility exceeds the implied move; review historical PRA earnings reactions and macro stress periods before sizing. Always rebuild the position from current PRA chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on PRA?
- A cash-secured put on PRA is the cash-secured put strategy applied to PRA (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 PRA stock trading near $24.61, the strikes shown on this page are snapped to the nearest listed PRA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PRA 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 PRA cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 46.30%), 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 PRA cash-secured put?
- The breakeven for the PRA 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 PRA market-implied 1-standard-deviation expected move is approximately 13.27%; 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 PRA?
- Cash-secured puts on PRA earn premium while a trader waits to acquire PRA stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PRA.
- How does current PRA implied volatility affect this cash-secured put?
- PRA ATM IV is at 46.30% with IV rank near 37.30%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.