UMH Cash-Secured Put Strategy
UMH (UMH Properties, Inc.), in the Real Estate sector, (REIT - Residential industry), listed on NYSE.
UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 124 manufactured home communities containing approximately 23,400 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan and Maryland. In addition, the Company owns a portfolio of REIT securities.
UMH (UMH Properties, Inc.) trades in the Real Estate sector, specifically REIT - Residential, with a market capitalization of approximately $1.31B, a trailing P/E of 44.33, a beta of 0.98 versus the broader market, a 52-week range of 13.93-17.44, average daily share volume of 630K, a public-listing history dating back to 1985, approximately 513 full-time employees. These structural characteristics shape how UMH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places UMH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 44.33 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. UMH 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 UMH?
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 UMH snapshot
As of May 15, 2026, spot at $14.95, ATM IV 9.50%, IV rank 0.00%, expected move 2.72%. The cash-secured put on UMH 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 UMH specifically: UMH IV at 9.50% is on the cheap side of its 1-year range, which means a premium-selling UMH cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 2.72% (roughly $0.41 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 UMH expiries trade a higher absolute premium for lower per-day decay. Position sizing on UMH should anchor to the underlying notional of $14.95 per share and to the trader's directional view on UMH stock.
UMH cash-secured put setup
The UMH 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 UMH near $14.95, the first option leg uses a $14.20 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UMH 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 UMH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $14.20 | N/A |
UMH 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.
UMH cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on UMH. 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 UMH
Cash-secured puts on UMH earn premium while a trader waits to acquire UMH stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning UMH.
UMH thesis for this cash-secured put
The market-implied 1-standard-deviation range for UMH extends from approximately $14.54 on the downside to $15.36 on the upside. A UMH cash-secured put lets a trader earn premium while waiting to acquire UMH 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 UMH IV rank near 0.00% 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 UMH at 9.50%. As a Real Estate name, UMH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UMH-specific events.
UMH 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. UMH positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UMH alongside the broader basket even when UMH-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on UMH carry tail risk when realized volatility exceeds the implied move; review historical UMH earnings reactions and macro stress periods before sizing. Always rebuild the position from current UMH chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on UMH?
- A cash-secured put on UMH is the cash-secured put strategy applied to UMH (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 UMH stock trading near $14.95, the strikes shown on this page are snapped to the nearest listed UMH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UMH 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 UMH cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 9.50%), 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 UMH cash-secured put?
- The breakeven for the UMH 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 UMH market-implied 1-standard-deviation expected move is approximately 2.72%; 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 UMH?
- Cash-secured puts on UMH earn premium while a trader waits to acquire UMH stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning UMH.
- How does current UMH implied volatility affect this cash-secured put?
- UMH ATM IV is at 9.50% with IV rank near 0.00%, 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.