Core Viewpoint - Hims & Hers Health (HIMS) is identified as a highly rated stock with significant implied volatility, presenting opportunities for traders to utilize cash-secured puts to potentially acquire the stock at a discount [1]. Options Trading Strategy - A cash-secured put involves writing a put option while setting aside cash to buy the stock, aiming for the option to expire worthless or to acquire the stock below its current price [2]. - Selling a put option with a strike price of $50, expiring on November 21, could generate approximately $555 in premium, with the stock trading around $54.38 [4]. - The break-even price for this trade is calculated at $44.45, which is 18% below the current trading price [4]. Potential Returns and Risks - If the stock remains above $50 at expiry, the put option expires worthless, yielding a 12.5% return on capital at risk, equating to about 106% on an annualized basis [5]. - The maximum loss occurs if the stock price drops to $0, resulting in a loss of $4,445, although most traders would likely exit before reaching this point [6]. - Cash-secured puts are viewed as a method to generate high returns on stocks that investors are willing to own, with the potential to sell covered calls for additional income if assigned [6]. Company Ratings and Earnings - Hims & Hers Health holds a Composite Rating of 98 out of 99, an Earnings Per Share Rating of 80, and a Relative Strength Rating of 95, ranking first in its group according to Investor's Business Daily [7]. - The company is expected to announce its third-quarter earnings in early November, introducing earnings risk associated with the trade [7].