PUMP Cash-Secured Put Strategy
PUMP (ProPetro Holding Corp.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
ProPetro Holding Corp., an oilfield services company, provides hydraulic fracturing and other related services. The company operates through Pressure Pumping and All Other segments. It offers cementing, acidizing, and coiled tubing services. The company serves oil and gas companies engaged in the exploration and production of North American oil and natural gas resources. As of December 31, 2021, its fleet comprised 12 hydraulic fracturing units with 1,423,000 hydraulic horsepower. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.
PUMP (ProPetro Holding Corp.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $2.03B, a beta of 0.77 versus the broader market, a 52-week range of 4.51-18.5, average daily share volume of 3.7M, a public-listing history dating back to 2017, approximately 2K full-time employees. These structural characteristics shape how PUMP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.77 places PUMP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a cash-secured put on PUMP?
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 PUMP snapshot
As of May 15, 2026, spot at $17.61, ATM IV 59.20%, IV rank 30.51%, expected move 16.97%. The cash-secured put on PUMP 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 PUMP specifically: PUMP IV at 59.20% is mid-range versus its 1-year history, so the credit collected on a PUMP cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 16.97% (roughly $2.99 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 PUMP expiries trade a higher absolute premium for lower per-day decay. Position sizing on PUMP should anchor to the underlying notional of $17.61 per share and to the trader's directional view on PUMP stock.
PUMP cash-secured put setup
The PUMP 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 PUMP near $17.61, the first option leg uses a $16.73 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PUMP 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 PUMP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $16.73 | N/A |
PUMP 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.
PUMP cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on PUMP. 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 PUMP
Cash-secured puts on PUMP earn premium while a trader waits to acquire PUMP stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PUMP.
PUMP thesis for this cash-secured put
The market-implied 1-standard-deviation range for PUMP extends from approximately $14.62 on the downside to $20.60 on the upside. A PUMP cash-secured put lets a trader earn premium while waiting to acquire PUMP 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 PUMP IV rank near 30.51% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on PUMP should anchor more to the directional view and the expected-move geometry. As a Energy name, PUMP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PUMP-specific events.
PUMP 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. PUMP positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PUMP alongside the broader basket even when PUMP-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on PUMP carry tail risk when realized volatility exceeds the implied move; review historical PUMP earnings reactions and macro stress periods before sizing. Always rebuild the position from current PUMP chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on PUMP?
- A cash-secured put on PUMP is the cash-secured put strategy applied to PUMP (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 PUMP stock trading near $17.61, the strikes shown on this page are snapped to the nearest listed PUMP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PUMP 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 PUMP cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 59.20%), 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 PUMP cash-secured put?
- The breakeven for the PUMP 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 PUMP market-implied 1-standard-deviation expected move is approximately 16.97%; 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 PUMP?
- Cash-secured puts on PUMP earn premium while a trader waits to acquire PUMP stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PUMP.
- How does current PUMP implied volatility affect this cash-secured put?
- PUMP ATM IV is at 59.20% with IV rank near 30.51%, 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.