BDTX Cash-Secured Put Strategy

BDTX (Black Diamond Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Black Diamond Therapeutics, Inc., a biotechnology company, discover, develops, and commercializes medicines for patient with genetically defined tumors. It develops BDTX-189, an irreversible small molecule inhibitor that is designed to targets oncogenic proteins defined by the non-canonical epidermal growth factor receptor (EGFR) and human epidermal growth factor receptor 2 driver mutations. The company is also developing BDTX-1535, a brain-penetrant inhibitor of EGFR mutations, including canonical, intrinsic resistance, and acquired resistance mutations; and BDTX-4933, a brain-penetrant inhibitor of oncogenic BRAF class I, II and III alterations. It has a strategic partnership with OpenEye Scientific Software, Inc. The company was formerly known as ASET Therapeutics, Inc. and changed its name to Black Diamond Therapeutics, Inc. in January 2018. Black Diamond Therapeutics, Inc. was incorporated in 2014 and is headquartered in Cambridge, Massachusetts.

BDTX (Black Diamond Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $163.9M, a beta of 3.35 versus the broader market, a 52-week range of 1.77-4.94, average daily share volume of 748K, a public-listing history dating back to 2020, approximately 24 full-time employees. These structural characteristics shape how BDTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.35 indicates BDTX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a cash-secured put on BDTX?

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 BDTX snapshot

As of May 15, 2026, spot at $2.75, ATM IV 171.70%, IV rank 34.68%, expected move 49.22%. The cash-secured put on BDTX 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 BDTX specifically: BDTX IV at 171.70% is mid-range versus its 1-year history, so the credit collected on a BDTX cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 49.22% (roughly $1.35 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 BDTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on BDTX should anchor to the underlying notional of $2.75 per share and to the trader's directional view on BDTX stock.

BDTX cash-secured put setup

The BDTX 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 BDTX near $2.75, the first option leg uses a $2.61 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BDTX 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 BDTX shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$2.61N/A

BDTX 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.

BDTX cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on BDTX. 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 BDTX

Cash-secured puts on BDTX earn premium while a trader waits to acquire BDTX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning BDTX.

BDTX thesis for this cash-secured put

The market-implied 1-standard-deviation range for BDTX extends from approximately $1.40 on the downside to $4.10 on the upside. A BDTX cash-secured put lets a trader earn premium while waiting to acquire BDTX 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 BDTX IV rank near 34.68% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on BDTX should anchor more to the directional view and the expected-move geometry. As a Healthcare name, BDTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BDTX-specific events.

BDTX 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. BDTX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BDTX alongside the broader basket even when BDTX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on BDTX carry tail risk when realized volatility exceeds the implied move; review historical BDTX earnings reactions and macro stress periods before sizing. Always rebuild the position from current BDTX chain quotes before placing a trade.

Frequently asked questions

What is a cash-secured put on BDTX?
A cash-secured put on BDTX is the cash-secured put strategy applied to BDTX (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 BDTX stock trading near $2.75, the strikes shown on this page are snapped to the nearest listed BDTX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BDTX 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 BDTX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 171.70%), 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 BDTX cash-secured put?
The breakeven for the BDTX 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 BDTX market-implied 1-standard-deviation expected move is approximately 49.22%; 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 BDTX?
Cash-secured puts on BDTX earn premium while a trader waits to acquire BDTX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning BDTX.
How does current BDTX implied volatility affect this cash-secured put?
BDTX ATM IV is at 171.70% with IV rank near 34.68%, 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.

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