BDTX Long Put Strategy

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

Black Diamond Therapeutics, Inc. is a biotechnology enterprise dedicated to discovering, advancing, and bringing to market therapeutic agents specifically designed for patients with genetically characterized tumors. A core part of its pipeline is BDTX-189, an irreversible small molecule inhibitor. This compound is engineered to neutralize oncogenic proteins driven by non-canonical epidermal growth factor receptor (EGFR) and human epidermal growth factor receptor 2 (HER2) driver mutations. The firm is also progressing BDTX-1535, a brain-penetrant inhibitor addressing a range of EGFR mutations, including conventional, inherent resistance, and acquired resistance forms. Concurrently, it is advancing BDTX-4933, another brain-penetrant inhibitor targeting oncogenic BRAF alterations across Class I, II, and III categories. Black Diamond maintains a strategic alliance with OpenEye Scientific Software, Inc.

BDTX (Black Diamond Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $98.0M, a beta of 3.23 versus the broader market, a 52-week range of 1.6-4.94, average daily share volume of 1.5M, 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 3.23 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 long put on BDTX?

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.

Current BDTX snapshot

As of June 29, 2026, spot at $1.75, ATM IV 187.20%, IV rank 36.08%, expected move 53.67%. The long 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 18-day expiry.

Why this long put structure on BDTX specifically: BDTX IV at 187.20% 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 53.67% (roughly $0.94 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 BDTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on BDTX should anchor to the underlying notional of $1.75 per share and to the trader's directional view on BDTX stock.

BDTX long put setup

The BDTX 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 BDTX near $1.75, the first option leg uses a $1.75 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 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 BDTX shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 1Put$1.75N/A

BDTX 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.

BDTX long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long 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 long put on BDTX

Long puts on BDTX hedge an existing long BDTX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BDTX exposure being hedged.

BDTX thesis for this long put

The market-implied 1-standard-deviation range for BDTX extends from approximately $0.81 on the downside to $2.69 on the upside. A BDTX long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long BDTX position with one put per 100 shares held. Current BDTX IV rank near 36.08% is mid-range against its 1-year distribution, so the IV signal is neutral; the long 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 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. 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. Long-premium structures like a long put on BDTX 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 BDTX chain quotes before placing a trade.

Frequently asked questions

What is a long put on BDTX?
A long put on BDTX is the long put strategy applied to BDTX (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 BDTX stock trading near $1.75, 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 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 BDTX long put priced from the end-of-day chain at a 30-day expiry (ATM IV 187.20%), 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 BDTX long put?
The breakeven for the BDTX long 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 53.67%; 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 BDTX?
Long puts on BDTX hedge an existing long BDTX stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BDTX exposure being hedged.
How does current BDTX implied volatility affect this long put?
BDTX ATM IV is at 187.20% with IV rank near 36.08%, 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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