ALEC Cash-Secured Put Strategy

ALEC (Alector, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Alector, Inc., a clinical stage biopharmaceutical company, develops therapies for the treatment of neurodegeneration diseases. Its products include AL001, a humanized recombinant monoclonal antibody, which is in Phase III clinical trial for the treatment of frontotemporal dementia, Alzheimer's, Parkinson's, and amyotrophic lateral sclerosis diseases; and AL101 that is in Phase I clinical trial for the treatment of neurodegenerative diseases, including Alzheimer's and Parkinson's diseases. The company also offers AL002, a product candidate that is in Phase II clinical trial for the treatment of Alzheimer's disease; and AL003, which is in Phase I clinical trial for the treatment of Alzheimer's disease. In addition, its products in development stage include AL044 that targets MS4A4A, a risk gene for Alzheimer's disease. Alector, Inc. has a collaboration agreement with Adimab, LLC for the research and development of antibodies; and a strategic collaboration agreement with GlaxoSmithKline plc for the development and commercialization of monoclonal antibodies, such as AL001 and AL101 to treat neurodegenerative diseases. The company was founded in 2013 and is headquartered in South San Francisco, California.

ALEC (Alector, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $238.7M, a beta of 0.65 versus the broader market, a 52-week range of 1.01-3.4, average daily share volume of 721K, a public-listing history dating back to 2019, approximately 175 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 0.65 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.

Current ALEC snapshot

As of May 15, 2026, spot at $2.21, ATM IV 125.60%, IV rank 24.74%, expected move 36.01%. The cash-secured put on ALEC 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 34-day expiry.

Why this cash-secured put structure on ALEC specifically: ALEC IV at 125.60% 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 36.01% (roughly $0.80 on the underlying). The 34-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 $2.21 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 near $2.21, the first option leg uses a $2.10 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 34-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).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$2.10N/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 $1.41 on the downside to $3.01 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 24.74% 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 125.60%. 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 trading near $2.21, the strikes shown on this page are snapped to the nearest listed ALEC chain strike and the premiums come straight from the end-of-day 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 125.60%), 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 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 ALEC market-implied 1-standard-deviation expected move is approximately 36.01%; 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 125.60% with IV rank near 24.74%, 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.

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