ALLO Cash-Secured Put Strategy
ALLO (Allogene Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Allogene Therapeutics, Inc. operates as a clinical-stage immuno-oncology firm dedicated to the creation and commercialization of genetically engineered allogeneic T-cell therapies for the treatment of various cancers. A pivotal product in their development pipeline is UCART19, an allogeneic chimeric antigen receptor (CAR) T-cell therapy. This candidate is being developed, manufactured, and prepared for market release to address relapsed/refractory (R/R) CD19-positive B-cell acute lymphoblastic leukemia (ALL) in both children and adults. The company's portfolio also encompasses ALLO-501, an anti-CD19 allogeneic CAR T-cell candidate currently in Phase I clinical trials for R/R non-Hodgkin lymphoma. A related therapeutic, ALLO-501A, is progressing through Phase I/II studies, targeting R/R large B-cell lymphoma or transformed follicular lymphoma. Furthermore, Allogene is advancing several other promising candidates: ALLO-715, an allogeneic CAR T-cell therapy in Phase I for R/R multiple myeloma; ALLO-605, another allogeneic CAR T-cell designed for multiple myeloma; and ALLO-647, an anti-CD52 monoclonal antibody.
ALLO (Allogene Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $707.6M, a beta of 0.47 versus the broader market, a 52-week range of 1.03-4.46, average daily share volume of 10.0M, a public-listing history dating back to 2018, approximately 151 full-time employees. These structural characteristics shape how ALLO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.47 indicates ALLO 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 ALLO?
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.
ALLO snapshot
As of August 14, 2026, spot at $2.06, ATM IV 92.70%, IV rank 16.48%, expected move 26.58%. The cash-secured put on ALLO 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 ALLO specifically: ALLO IV at 92.70% is on the cheap side of its 1-year range, which means a premium-selling ALLO cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 26.58% (roughly $0.55 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 ALLO expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALLO should anchor to the underlying notional of $2.06 per share and to the trader's directional view on ALLO stock.
ALLO cash-secured put setup
The ALLO 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 ALLO at $2.06 on that close, the first option leg uses a $1.96 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALLO 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 ALLO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $1.96 | N/A |
ALLO 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.
ALLO cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ALLO. 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 ALLO
Cash-secured puts on ALLO earn premium while a trader waits to acquire ALLO stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ALLO.
ALLO thesis for this cash-secured put
The market-implied 1-standard-deviation range for ALLO extends from approximately $1.51 on the downside to $2.61 on the upside. A ALLO cash-secured put lets a trader earn premium while waiting to acquire ALLO 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 ALLO IV rank near 16.48% 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 ALLO at 92.70%. As a Healthcare name, ALLO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALLO-specific events.
ALLO 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. ALLO positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALLO alongside the broader basket even when ALLO-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ALLO carry tail risk when realized volatility exceeds the implied move; review historical ALLO earnings reactions and macro stress periods before sizing. Always rebuild the position from current ALLO chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on ALLO?
- A cash-secured put on ALLO is the cash-secured put strategy applied to ALLO (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 ALLO stock at $2.06 on the most recent close, the strikes shown on this page are snapped to the nearest listed ALLO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ALLO 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 ALLO cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 92.70%), 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 ALLO cash-secured put?
- The breakeven for the ALLO 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 ALLO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.58%; 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 ALLO?
- Cash-secured puts on ALLO earn premium while a trader waits to acquire ALLO stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ALLO.
- How does current ALLO implied volatility affect this cash-secured put?
- ALLO ATM IV is at 92.70% with IV rank near 16.48%, 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.