ADUS Cash-Secured Put Strategy
ADUS (Addus HomeCare Corporation), in the Healthcare sector, (Medical - Care Facilities industry), listed on NASDAQ.
Addus HomeCare Corporation, together with its subsidiaries, provides personal care services to elderly, chronically ill, disabled persons, and individuals who are at risk of hospitalization or institutionalization in the United States. It operates through three segments: Personal Care, Hospice, and Home Health. The Personal Care segment provides non-medical assistance with activities of daily living. This segment offers services that include assistance with bathing, grooming, oral care, feeding and dressing, medication reminders, meal planning and preparation, housekeeping, and transportation services. The Hospice segment provides palliative nursing care, social work, spiritual counseling, homemaker, and bereavement counseling services for people who are terminally ill, as well as related services for their families. The Home Health segment offers skilled nursing and physical, occupational, and speech therapy for the individuals who requires assistance during an illness or after hospitalization.
ADUS (Addus HomeCare Corporation) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $1.76B, a trailing P/E of 17.51, a beta of 0.92 versus the broader market, a 52-week range of 90.89-124.44, average daily share volume of 259K, a public-listing history dating back to 2009, approximately 6K full-time employees. These structural characteristics shape how ADUS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places ADUS 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 ADUS?
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 ADUS snapshot
As of May 15, 2026, spot at $90.75, ATM IV 75.10%, IV rank 13.26%, expected move 21.53%. The cash-secured put on ADUS 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 63-day expiry.
Why this cash-secured put structure on ADUS specifically: ADUS IV at 75.10% is on the cheap side of its 1-year range, which means a premium-selling ADUS cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 21.53% (roughly $19.54 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ADUS expiries trade a higher absolute premium for lower per-day decay. Position sizing on ADUS should anchor to the underlying notional of $90.75 per share and to the trader's directional view on ADUS stock.
ADUS cash-secured put setup
The ADUS 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 ADUS near $90.75, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ADUS chain at a 63-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 ADUS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $85.00 | $1.39 |
ADUS cash-secured put risk and reward
- Net Premium / Debit
- +$139.00
- Max Profit (per contract)
- $139.00
- Max Loss (per contract)
- -$8,360.00
- Breakeven(s)
- $83.61
- Risk / Reward Ratio
- 0.017
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
ADUS cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ADUS. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$8,360.00 |
| $20.07 | -77.9% | -$6,353.58 |
| $40.14 | -55.8% | -$4,347.16 |
| $60.20 | -33.7% | -$2,340.73 |
| $80.27 | -11.6% | -$334.31 |
| $100.33 | +10.6% | +$139.00 |
| $120.40 | +32.7% | +$139.00 |
| $140.46 | +54.8% | +$139.00 |
| $160.52 | +76.9% | +$139.00 |
| $180.59 | +99.0% | +$139.00 |
When traders use cash-secured put on ADUS
Cash-secured puts on ADUS earn premium while a trader waits to acquire ADUS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ADUS.
ADUS thesis for this cash-secured put
The market-implied 1-standard-deviation range for ADUS extends from approximately $71.21 on the downside to $110.29 on the upside. A ADUS cash-secured put lets a trader earn premium while waiting to acquire ADUS 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 ADUS IV rank near 13.26% 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 ADUS at 75.10%. As a Healthcare name, ADUS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ADUS-specific events.
ADUS 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. ADUS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ADUS alongside the broader basket even when ADUS-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ADUS carry tail risk when realized volatility exceeds the implied move; review historical ADUS earnings reactions and macro stress periods before sizing. Always rebuild the position from current ADUS chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on ADUS?
- A cash-secured put on ADUS is the cash-secured put strategy applied to ADUS (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 ADUS stock trading near $90.75, the strikes shown on this page are snapped to the nearest listed ADUS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ADUS 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 ADUS cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 75.10%), the computed maximum profit is $139.00 per contract and the computed maximum loss is -$8,360.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ADUS cash-secured put?
- The breakeven for the ADUS cash-secured put priced on this page is roughly $83.61 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 ADUS market-implied 1-standard-deviation expected move is approximately 21.53%; 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 ADUS?
- Cash-secured puts on ADUS earn premium while a trader waits to acquire ADUS stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ADUS.
- How does current ADUS implied volatility affect this cash-secured put?
- ADUS ATM IV is at 75.10% with IV rank near 13.26%, 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.