UNTY Cash-Secured Put Strategy
UNTY (Unity Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
As the parent entity of Unity Bank, Unity Bancorp, Inc. delivers a comprehensive range of commercial and retail banking solutions, catering to individual consumers, small and mid-sized enterprises, and professional organizations. Its product portfolio encompasses various deposit accounts, such as personal and business checking, certificates of deposit (time deposits), money market accounts, and traditional savings accounts, alongside both interest-earning and non-interest-bearing demand deposit options. Furthermore, the bank extends a variety of lending products, including Small Business Administration (SBA) loans, commercial financing, and consumer credit facilities, which feature residential mortgages, home equity lines of credit and loans, residential construction financing, and personal loans. Customers can access these services both online and through its network of nineteen physical branches, strategically situated across Bergen, Hunterdon, Middlesex, Somerset, Union, and Warren counties in New Jersey, and Northampton County in Pennsylvania. Established in 1991, Unity Bancorp, Inc. maintains its corporate headquarters in Clinton, New Jersey.
UNTY (Unity Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $597.8M, a trailing P/E of 9.83, a beta of 0.64 versus the broader market, a 52-week range of 44.34-60.8618, average daily share volume of 53K, a public-listing history dating back to 1997, approximately 227 full-time employees. These structural characteristics shape how UNTY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.64 indicates UNTY 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 9.83 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. UNTY 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 UNTY?
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 UNTY snapshot
As of June 30, 2026, spot at $58.36, ATM IV 95.80%, IV rank 26.07%, expected move 27.46%. The cash-secured put on UNTY 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 17-day expiry.
Why this cash-secured put structure on UNTY specifically: UNTY IV at 95.80% is on the cheap side of its 1-year range, which means a premium-selling UNTY cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 27.46% (roughly $16.03 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UNTY expiries trade a higher absolute premium for lower per-day decay. Position sizing on UNTY should anchor to the underlying notional of $58.36 per share and to the trader's directional view on UNTY stock.
UNTY cash-secured put setup
The UNTY 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 UNTY near $58.36, the first option leg uses a $55.44 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UNTY chain at a 17-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 UNTY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $55.44 | N/A |
UNTY 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.
UNTY cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on UNTY. 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 UNTY
Cash-secured puts on UNTY earn premium while a trader waits to acquire UNTY stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning UNTY.
UNTY thesis for this cash-secured put
The market-implied 1-standard-deviation range for UNTY extends from approximately $42.33 on the downside to $74.39 on the upside. A UNTY cash-secured put lets a trader earn premium while waiting to acquire UNTY 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 UNTY IV rank near 26.07% 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 UNTY at 95.80%. As a Financial Services name, UNTY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UNTY-specific events.
UNTY 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. UNTY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UNTY alongside the broader basket even when UNTY-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on UNTY carry tail risk when realized volatility exceeds the implied move; review historical UNTY earnings reactions and macro stress periods before sizing. Always rebuild the position from current UNTY chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on UNTY?
- A cash-secured put on UNTY is the cash-secured put strategy applied to UNTY (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 UNTY stock trading near $58.36, the strikes shown on this page are snapped to the nearest listed UNTY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UNTY 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 UNTY cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 95.80%), 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 UNTY cash-secured put?
- The breakeven for the UNTY 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 UNTY market-implied 1-standard-deviation expected move is approximately 27.46%; 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 UNTY?
- Cash-secured puts on UNTY earn premium while a trader waits to acquire UNTY stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning UNTY.
- How does current UNTY implied volatility affect this cash-secured put?
- UNTY ATM IV is at 95.80% with IV rank near 26.07%, 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.