CGEM Cash-Secured Put Strategy
CGEM (Cullinan Therapeutics, Inc.), in the Healthcare sector, (Medical - Pharmaceuticals industry), listed on NASDAQ.
Cullinan Therapeutics, Inc. is a clinical-stage biopharmaceutical company, which engages in the developing of oncology and immuno-oncology therapies. Its pipeline includes CLN-978, CLN-619, Zipalertinib CLN-081/TAS6417, CLN-049, and CLN-617. The company was founded by Patrick A. Baeuerle on September 15, 2016 and is headquartered in Cambridge, MA.
CGEM (Cullinan Therapeutics, Inc.) trades in the Healthcare sector, specifically Medical - Pharmaceuticals, with a market capitalization of approximately $1.00B, a beta of -0.09 versus the broader market, a 52-week range of 5.68-16.74, average daily share volume of 837K, a public-listing history dating back to 2021, approximately 111 full-time employees. These structural characteristics shape how CGEM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.09 indicates CGEM 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 CGEM?
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 CGEM snapshot
As of May 15, 2026, spot at $15.75, ATM IV 154.30%, IV rank 28.05%, expected move 44.24%. The cash-secured put on CGEM 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 CGEM specifically: CGEM IV at 154.30% is on the cheap side of its 1-year range, which means a premium-selling CGEM cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 44.24% (roughly $6.97 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 CGEM expiries trade a higher absolute premium for lower per-day decay. Position sizing on CGEM should anchor to the underlying notional of $15.75 per share and to the trader's directional view on CGEM stock.
CGEM cash-secured put setup
The CGEM 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 CGEM near $15.75, 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 CGEM 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 CGEM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $15.00 | $3.25 |
CGEM cash-secured put risk and reward
- Net Premium / Debit
- +$325.00
- Max Profit (per contract)
- $325.00
- Max Loss (per contract)
- -$1,174.00
- Breakeven(s)
- $11.75
- Risk / Reward Ratio
- 0.277
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
CGEM cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on CGEM. 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% | -$1,174.00 |
| $3.49 | -77.8% | -$825.87 |
| $6.97 | -55.7% | -$477.74 |
| $10.45 | -33.6% | -$129.61 |
| $13.94 | -11.5% | +$218.52 |
| $17.42 | +10.6% | +$325.00 |
| $20.90 | +32.7% | +$325.00 |
| $24.38 | +54.8% | +$325.00 |
| $27.86 | +76.9% | +$325.00 |
| $31.34 | +99.0% | +$325.00 |
When traders use cash-secured put on CGEM
Cash-secured puts on CGEM earn premium while a trader waits to acquire CGEM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CGEM.
CGEM thesis for this cash-secured put
The market-implied 1-standard-deviation range for CGEM extends from approximately $8.78 on the downside to $22.72 on the upside. A CGEM cash-secured put lets a trader earn premium while waiting to acquire CGEM 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 CGEM IV rank near 28.05% 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 CGEM at 154.30%. As a Healthcare name, CGEM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CGEM-specific events.
CGEM 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. CGEM positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CGEM alongside the broader basket even when CGEM-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on CGEM carry tail risk when realized volatility exceeds the implied move; review historical CGEM earnings reactions and macro stress periods before sizing. Always rebuild the position from current CGEM chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on CGEM?
- A cash-secured put on CGEM is the cash-secured put strategy applied to CGEM (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 CGEM stock trading near $15.75, the strikes shown on this page are snapped to the nearest listed CGEM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CGEM 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 CGEM cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 154.30%), the computed maximum profit is $325.00 per contract and the computed maximum loss is -$1,174.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CGEM cash-secured put?
- The breakeven for the CGEM cash-secured put priced on this page is roughly $11.75 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 CGEM market-implied 1-standard-deviation expected move is approximately 44.24%; 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 CGEM?
- Cash-secured puts on CGEM earn premium while a trader waits to acquire CGEM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CGEM.
- How does current CGEM implied volatility affect this cash-secured put?
- CGEM ATM IV is at 154.30% with IV rank near 28.05%, 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.