ALXO Cash-Secured Put Strategy
ALXO (ALX Oncology Holdings Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
ALX Oncology Holdings Inc., a clinical-stage immuno-oncology company, focuses on developing therapies for cancer patients in the United States. The company’s lead product candidate is Evorpacept, a CD47 blocking therapeutic biologic development as a combination therapy with other anti-cancer agents, including ASPEN-06, under phase 2 clinical study for treating Gastric/GEJ cancer. It has collaboration agreement for Evorpacept combination programs comprising Jazz Pharmaceuticals plc for zanidatamab, under phase 1b/2 trial for the treatment of breast cancer and other solid tumors; HER2 with an ADC, fam-trastuzumab deruxtecan-nxki, under phase 1 trial for the treatment of patients with breast cancer; ALX2004, under phase 1 clinical trial for treating solid tumors; MD Anderson Cancer Center with rituximab and lenalidomide for the treatment of patients with indolent and aggressive NHL; and Sanofi with isatuximab and dexamethasone, under phase 1/2 trial for the treatment of patients with relapsed or refractory multiple myeloma. It has license agreements with Board of Trustees of Leland Stanford Junior University. The company was incorporated in 2015 and is headquartered in South San Francisco, California.
ALXO (ALX Oncology Holdings Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $274.5M, a beta of 0.45 versus the broader market, a 52-week range of 0.41-2.66, average daily share volume of 1.4M, a public-listing history dating back to 2020, approximately 43 full-time employees. These structural characteristics shape how ALXO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.45 indicates ALXO 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 ALXO?
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 ALXO snapshot
As of June 29, 2026, spot at $2.21, ATM IV 107.50%, IV rank 18.67%, expected move 30.82%. The cash-secured put on ALXO 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 18-day expiry.
Why this cash-secured put structure on ALXO specifically: ALXO IV at 107.50% is on the cheap side of its 1-year range, which means a premium-selling ALXO cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 30.82% (roughly $0.68 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ALXO expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALXO should anchor to the underlying notional of $2.21 per share and to the trader's directional view on ALXO stock.
ALXO cash-secured put setup
The ALXO 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 ALXO 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 ALXO chain at a 18-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 ALXO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $2.10 | N/A |
ALXO 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.
ALXO cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ALXO. 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 ALXO
Cash-secured puts on ALXO earn premium while a trader waits to acquire ALXO stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ALXO.
ALXO thesis for this cash-secured put
The market-implied 1-standard-deviation range for ALXO extends from approximately $1.53 on the downside to $2.89 on the upside. A ALXO cash-secured put lets a trader earn premium while waiting to acquire ALXO 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 ALXO IV rank near 18.67% 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 ALXO at 107.50%. As a Healthcare name, ALXO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALXO-specific events.
ALXO 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. ALXO positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALXO alongside the broader basket even when ALXO-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ALXO carry tail risk when realized volatility exceeds the implied move; review historical ALXO earnings reactions and macro stress periods before sizing. Always rebuild the position from current ALXO chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on ALXO?
- A cash-secured put on ALXO is the cash-secured put strategy applied to ALXO (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 ALXO stock trading near $2.21, the strikes shown on this page are snapped to the nearest listed ALXO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ALXO 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 ALXO cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 107.50%), 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 ALXO cash-secured put?
- The breakeven for the ALXO 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 ALXO market-implied 1-standard-deviation expected move is approximately 30.82%; 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 ALXO?
- Cash-secured puts on ALXO earn premium while a trader waits to acquire ALXO stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ALXO.
- How does current ALXO implied volatility affect this cash-secured put?
- ALXO ATM IV is at 107.50% with IV rank near 18.67%, 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.