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Founded in 2017, the company offers personalized treatments for conditions like hair loss, skincare, sexual health, and mental health through an online model. By connecting consumers directly with licensed professionals and delivering discreet, affordable solutions, Hims & Hers has tapped into a growing demand for convenient healthcare.

Key Financial Highlights

HIMS stock is valued at around $42.42 as of August 2025, translating to a market cap of roughly $9.59 billion.

The company has shown impressive growth, with trailing twelve-month (TTM) revenue reaching $2.01 billion and earnings per share (EPS) at $0.79. Its price-to-earnings (PE) ratio stands at 53.70, reflecting investor optimism about future expansion.

Profit margins are healthy at 9.61%, and return on equity is a robust 41.87%, indicating efficient use of shareholder funds.

Hims & Hers has expanded beyond its core offerings, venturing into weight management and personalized medicine, which has driven subscriber growth to millions. However, the stock has been volatile, peaking at $72.98 earlier in 2025 before settling lower amid broader market pressures.

This volatility makes it an ideal candidate for options strategies like cash-secured puts, where you can capitalize on premiums while positioning for a potential buy.

For more on the company's journey, check out our internal guide on Telehealth Stocks to Watch in 2025.

Understanding Cash-Secured Puts: The Basics

Before diving into my HIMS strategy, let's break down what a cash-secured put is. Essentially, it's an options trade where you sell (or "write") a put option and set aside enough cash to buy the underlying stock if the option is exercised.

This is a bullish to neutral strategy, ideal if you believe the stock won't drop significantly but want to earn income or buy at a discount.

How Cash-Secured Puts Work

• When you sell a put, you take on the obligation to buy 100 shares at the strike price if the buyer chooses to exercise. In return, you receive a premium upfront.
• Cash Reserve: You must have the full amount (strike price x 100) in your account to cover the purchase.
• Outcomes:
  • If the stock price stays above the strike at expiration, the put expires worthless, and you keep the premium as profit.
  • If it falls below, you're assigned the shares at the strike price, minus the premium received, effectively lowering your cost basis.
• Risks: The main risk is the stock dropping well below the strike, leading to losses on the assigned shares. However, since you're happy to own the stock, this can be mitigated.

This strategy generates income with limited downside if managed well. For practical tips, see the Options Industry Council's guide on cash-secured puts.

Why Use This Strategy Now?

With interest rates stabilizing and markets volatile, cash-secured puts offer better yields than many savings accounts. Plus, for growth stocks like HIMS, it allows you to wait for a dip without missing out on premiums.

A Real-World Example: Cash-Secured Puts on Deere & Company Stock

To illustrate, let's look at a classic example with Deere & Company (DE), the agricultural machinery giant. In a 2016 analysis, an investor sold a cash-secured put on Deere with a $75 strike price.

Here's how it broke down:

• Stock Price at Time: Around $80.
• Strike Price: $75.
• Premium Received: Assume $2 per share (typical for such examples; actual varies).
• Cash Reserved: $7,500 (for 100 shares).
• Yield: Premium / Cash Reserved = $200 / $7,500 = 2.67% for the option period.

If Deere stayed above $75, the investor kept the $200 premium. If assigned, the effective purchase price was $73 ($75 - $2 premium), a discount from the market price.

Lessons from the Deere Example

• Income Generation: Even if not assigned, the yield beats many bonds.
• Discounted Buy: An Assignment meant owning Deere at a lower cost.
• Stats Support: Deere's strong fundamentals (e.g., consistent dividends) made it a safe pick, similar to HIMS' growth trajectory.

This example shows how the strategy works in practice. For more on managing such trades, read Charles Schwab's article on managing cash-secured puts.

Applying the Strategy to Hims & Hers Stock

Now, let's apply this to HIMS. With the stock at $42.42, I'm targeting a $37 strike for a cash-secured put, aiming to buy at that level or earn premium if it doesn't drop.

Based on recent options data, premiums can vary, but in volatile periods, they can reach levels equating to 4.2% monthly.

Current HIMS Options Landscape

Looking at the September 19, 2025, expiration (about 30 days from now), the put options around $37 show attractive premiums due to implied volatility around 68-70%.

Here's a snapshot table:</

For the $37 strike, the ask is 1.19, yielding 3.22% for the month. However, if volatility spikes (as it did earlier in 2025 when the stock hit $72), premiums can rise to 1.55 or more, hitting that 4.2% mark (1.55 / 37 ≈ 4.2%).

Step-by-Step: My HIMS Cash-Secured Put Trade

1. Choose the Strike: $37, about 13% below the current price, as I'm bullish long-term but want a discount.
2. Check Premium: Assume 1.55 for a 4.2% yield (based on historical volatility examples).

3. Reserve Cash: $3,700 for one contract (100 shares).
4. Receive Premium: $155 immediately.
5. Monitor: If HIMS > $37 at expiration, keep $155 (4.2% return). If below, buy at $37 - $1.55 = $35.45 effective cost.

This beats holding cash idle. In a February 2025 example, a similar trade on HIMS with a $40 strike yielded 10.25% for 37 days, showing potential in high-vol periods.

Practical Tips for Implementing

• Broker Selection: Use platforms like Interactive Brokers or TD Ameritrade for low commissions.
• Timing: Sell during high volatility for better premiums.
• Rolling Over: If expiring worthless, roll to the next month for ongoing income.
• Tax Considerations: Premiums are taxed as short-term gains in the UK; consult a tax advisor.

For beginners, explore our internal post on Options Trading.

Risks and How to Mitigate Them

No strategy is risk-free. With cash-secured puts:

• Market Decline: If HIMS drops to $30, you're stuck with shares at $37 cost basis. Mitigation: Choose stocks you want to own long-term, like HIMS with its 41.87% ROE.

• Opportunity Cost: Cash is tied up, missing other investments. Limit to 20-30% of portfolio.
• Volatility Swings: High IV boosts premiums but increases assignment odds.
• Assignment Early: Rare, but possible; be prepared.

Always use stop-loss orders or monitor news, such as HIMS' expansion into new markets.

Comparing to Other Strategies: Options Wheel and More

The cash-secured put is part of the "options wheel" strategy, where if assigned, you sell covered calls on the shares.

For HIMS, this could yield even more income.

• Vs. Covered Calls: Requires owning stock first; puts let you enter without buying upfront.
• Vs. Buying Outright: Puts offer income while waiting; direct buy has no premium.
• Compared to LEAPS, long-term puts are more expensive, whereas short-term cash-secured puts are typically used for income generation.

In a Reddit discussion, users noted success with HIMS in wheels, collecting $122K in premiums.

Future Outlook for Hims & Hers

Hims & Hers is poised for growth in the $100+ billion telehealth market. With subscriber increases and partnerships, analysts project revenue growth of 20-30% annually. However, competition from players like Ro and regulatory risks loom. If the stock stabilizes above $40, cash-secured puts at $37 could provide steady yields.

For deeper analysis, link to our Growth Stocks Review.

Additional Considerations: Volatility, Taxes, and Portfolio Fit

Volatility is key – HIMS' IV at 68% for September puts means juicy premiums, but watch for earnings reports that could spike it.

Tax-wise, in Britain, options profits fall under capital gains; aim for tax-efficient accounts like ISAs.

Integrate this into a diversified portfolio: Allocate 10-20% to options income, balancing with bonds and ETFs.

Case Study Table: Historical HIMS Trades

This table shows variability based on market conditions.

Wrapping Up: Take Action on Your HIMS Strategy

In summary, using cash-secured puts on Hims & Hers lets me aim to buy at $37 or earn 4.2% monthly – a win-win in a growth-oriented stock. With solid fundamentals like $2B revenue and high ROE, HIMS is worth considering. Remember, start small, educate yourself, and monitor risks.

Ready to try? Open an options-enabled brokerage account today and paper trade first. Share your thoughts in the comments – have you used puts on HIMS? For more strategies, subscribe to our newsletter.

Key Citations:

• Yahoo Finance HIMS Quote

          CNBC HIMS Stock