AUPH Cash-Secured Put Strategy
AUPH (Aurinia Pharmaceuticals Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Aurinia Pharmaceuticals Inc., a commercial-stage biopharmaceutical company, focuses on developing and commercializing therapies to treat various diseases with unmet medical need in the United States and internationally. The company offers LUPKYNIS for the treatment of adult patients with active lupus nephritis. It has a collaboration and license agreement with Otsuka Pharmaceutical Co., Ltd. The company is headquartered in Victoria, Canada.
AUPH (Aurinia Pharmaceuticals Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.06B, a trailing P/E of 7.12, a beta of 1.45 versus the broader market, a 52-week range of 7.285-16.88, average daily share volume of 1.2M, a public-listing history dating back to 2014, approximately 130 full-time employees. These structural characteristics shape how AUPH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.45 indicates AUPH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 7.12 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a cash-secured put on AUPH?
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 AUPH snapshot
As of May 15, 2026, spot at $15.28, ATM IV 43.80%, IV rank 14.38%, expected move 12.56%. The cash-secured put on AUPH 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 63-day expiry.
Why this cash-secured put structure on AUPH specifically: AUPH IV at 43.80% is on the cheap side of its 1-year range, which means a premium-selling AUPH cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 12.56% (roughly $1.92 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AUPH expiries trade a higher absolute premium for lower per-day decay. Position sizing on AUPH should anchor to the underlying notional of $15.28 per share and to the trader's directional view on AUPH stock.
AUPH cash-secured put setup
The AUPH 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 AUPH near $15.28, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AUPH chain at a 63-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 AUPH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $15.00 | $0.93 |
AUPH cash-secured put risk and reward
- Net Premium / Debit
- +$92.50
- Max Profit (per contract)
- $92.50
- Max Loss (per contract)
- -$1,406.50
- Breakeven(s)
- $14.08
- Risk / Reward Ratio
- 0.066
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
AUPH cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on AUPH. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | -$1,406.50 |
| $3.39 | -77.8% | -$1,068.76 |
| $6.76 | -55.7% | -$731.02 |
| $10.14 | -33.6% | -$393.28 |
| $13.52 | -11.5% | -$55.55 |
| $16.90 | +10.6% | +$92.50 |
| $20.27 | +32.7% | +$92.50 |
| $23.65 | +54.8% | +$92.50 |
| $27.03 | +76.9% | +$92.50 |
| $30.41 | +99.0% | +$92.50 |
When traders use cash-secured put on AUPH
Cash-secured puts on AUPH earn premium while a trader waits to acquire AUPH stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AUPH.
AUPH thesis for this cash-secured put
The market-implied 1-standard-deviation range for AUPH extends from approximately $13.36 on the downside to $17.20 on the upside. A AUPH cash-secured put lets a trader earn premium while waiting to acquire AUPH 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 AUPH IV rank near 14.38% 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 AUPH at 43.80%. As a Healthcare name, AUPH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AUPH-specific events.
AUPH 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. AUPH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AUPH alongside the broader basket even when AUPH-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on AUPH carry tail risk when realized volatility exceeds the implied move; review historical AUPH earnings reactions and macro stress periods before sizing. Always rebuild the position from current AUPH chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on AUPH?
- A cash-secured put on AUPH is the cash-secured put strategy applied to AUPH (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 AUPH stock trading near $15.28, the strikes shown on this page are snapped to the nearest listed AUPH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AUPH 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 AUPH cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 43.80%), the computed maximum profit is $92.50 per contract and the computed maximum loss is -$1,406.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AUPH cash-secured put?
- The breakeven for the AUPH cash-secured put priced on this page is roughly $14.08 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 AUPH market-implied 1-standard-deviation expected move is approximately 12.56%; 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 AUPH?
- Cash-secured puts on AUPH earn premium while a trader waits to acquire AUPH stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AUPH.
- How does current AUPH implied volatility affect this cash-secured put?
- AUPH ATM IV is at 43.80% with IV rank near 14.38%, 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.