ALEC Cash-Secured Put Strategy
ALEC (Alector, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Alector, Inc. operates as a clinical-stage biopharmaceutical company, which engages in pioneering of immuno-neurology. It develops portfolio of innate immune system programs, designed to functionally repair genetic mutations and enable the rejuvenated immune cells to counteract emerging brain pathologies. Its treatment targets immune dysfunction as a root cause of multiple pathologies that are drivers of degenerative brain disorders. The company was founded by Asa Abeliovich, Errik B. Anderson, Tillman U. Gerngross, and Arnon Rosenthal in May 2013 and is headquartered in South San Francisco, CA.
ALEC (Alector, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $238.7M, a beta of 0.58 versus the broader market, a 52-week range of 1.09-3.4, average daily share volume of 742K, a public-listing history dating back to 2019, approximately 103 full-time employees. These structural characteristics shape how ALEC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.58 indicates ALEC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a cash-secured put on ALEC?
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.
ALEC snapshot
As of August 14, 2026, spot at $2.02, ATM IV 53.70%, IV rank 7.41%, expected move 15.40%. The cash-secured put on ALEC below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this cash-secured put structure on ALEC specifically: ALEC IV at 53.70% is on the cheap side of its 1-year range, which means a premium-selling ALEC cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 15.40% (roughly $0.31 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ALEC expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALEC should anchor to the underlying notional of $2.02 per share and to the trader's directional view on ALEC stock.
ALEC cash-secured put setup
The ALEC 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 ALEC at $2.02 on that close, the first option leg uses a $1.92 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALEC chain at a 35-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 ALEC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $1.92 | N/A |
ALEC 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.
ALEC cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ALEC. 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 ALEC
Cash-secured puts on ALEC earn premium while a trader waits to acquire ALEC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ALEC.
ALEC thesis for this cash-secured put
The market-implied 1-standard-deviation range for ALEC extends from approximately $1.71 on the downside to $2.33 on the upside. A ALEC cash-secured put lets a trader earn premium while waiting to acquire ALEC 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 ALEC IV rank near 7.41% 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 ALEC at 53.70%. As a Healthcare name, ALEC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALEC-specific events.
ALEC 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. ALEC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALEC alongside the broader basket even when ALEC-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ALEC carry tail risk when realized volatility exceeds the implied move; review historical ALEC earnings reactions and macro stress periods before sizing. Always rebuild the position from current ALEC chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on ALEC?
- A cash-secured put on ALEC is the cash-secured put strategy applied to ALEC (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 ALEC stock at $2.02 on the most recent close, the strikes shown on this page are snapped to the nearest listed ALEC chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ALEC 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 ALEC cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 53.70%), 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 ALEC cash-secured put?
- The breakeven for the ALEC cash-secured put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The ALEC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.40%; 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 ALEC?
- Cash-secured puts on ALEC earn premium while a trader waits to acquire ALEC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ALEC.
- How does current ALEC implied volatility affect this cash-secured put?
- ALEC ATM IV is at 53.70% with IV rank near 7.41%, 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.