ALXO Long 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 $270.5M, a beta of 0.43 versus the broader market, a 52-week range of 0.625-2.66, average daily share volume of 1.3M, 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 0.43 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 long put on ALXO?
A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.
ALXO snapshot
As of August 14, 2026, spot at $1.98, ATM IV 239.20%, IV rank 46.51%, expected move 68.58%. The long put on ALXO 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 long put structure on ALXO specifically: ALXO IV at 239.20% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 68.58% (roughly $1.36 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 ALXO expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALXO should anchor to the underlying notional of $1.98 per share and to the trader's directional view on ALXO stock.
ALXO long put setup
The ALXO long 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 at $1.98 on that close, the first option leg uses a $1.98 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 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 ALXO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $1.98 | N/A |
ALXO long 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 the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
ALXO long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long 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 long put on ALXO
Long puts on ALXO hedge an existing long ALXO stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying ALXO exposure being hedged.
ALXO thesis for this long put
The market-implied 1-standard-deviation range for ALXO extends from approximately $0.62 on the downside to $3.34 on the upside. A ALXO long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long ALXO position with one put per 100 shares held. Current ALXO IV rank near 46.51% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on ALXO should anchor more to the directional view and the expected-move geometry. 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 long put positions are structurally bearish; 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. Long-premium structures like a long put on ALXO are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current ALXO chain quotes before placing a trade.
Frequently asked questions
- What is a long put on ALXO?
- A long put on ALXO is the long put strategy applied to ALXO (stock). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. With ALXO stock at $1.98 on the most recent close, the strikes shown on this page are snapped to the nearest listed ALXO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ALXO long put max profit and max loss calculated?
- Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the ALXO long put priced from the end-of-day chain at a 30-day expiry (ATM IV 239.20%), 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 long put?
- The breakeven for the ALXO long 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 ALXO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 68.58%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long put on ALXO?
- Long puts on ALXO hedge an existing long ALXO stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying ALXO exposure being hedged.
- How does current ALXO implied volatility affect this long put?
- ALXO ATM IV is at 239.20% with IV rank near 46.51%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.