CPRX Cash-Secured Put Strategy

CPRX (Catalyst Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Catalyst Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on developing and commercializing therapies for people with rare debilitating, chronic neuromuscular, and neurological diseases in the United States. It offers Firdapse, an amifampridine phosphate tablets for the treatment of patients with lambert-eaton myasthenic syndrome (LEMS); and Ruzurgi for the treatment of pediatric LEMS patients. The company also develops Firdapse for the treatment of MuSK antibody positive myasthenia gravis, and spinal muscular atrophy type 3, as well as to treat hereditary neuropathy with liability to pressure palsies. It has license agreements with BioMarin Pharmaceutical Inc.; and collaboration and license agreement with Endo Ventures Limited for the development and commercialization of generic Sabril tablets. The company was formerly known as Catalyst Pharmaceutical Partners, Inc. and changed its name to Catalyst Pharmaceuticals, Inc. in May 2015. Catalyst Pharmaceuticals, Inc. was founded in 2002 and is based in Coral Gables, Florida.

CPRX (Catalyst Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $3.81B, a trailing P/E of 17.21, a beta of 0.72 versus the broader market, a 52-week range of 19.05-32.56, average daily share volume of 1.8M, a public-listing history dating back to 2006, approximately 181 full-time employees. These structural characteristics shape how CPRX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.72 places CPRX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a cash-secured put on CPRX?

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 CPRX snapshot

As of May 15, 2026, spot at $31.16, ATM IV 5.20%, IV rank 0.92%, expected move 1.49%. The cash-secured put on CPRX 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 CPRX specifically: CPRX IV at 5.20% is on the cheap side of its 1-year range, which means a premium-selling CPRX cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 1.49% (roughly $0.46 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 CPRX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPRX should anchor to the underlying notional of $31.16 per share and to the trader's directional view on CPRX stock.

CPRX cash-secured put setup

The CPRX 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 CPRX near $31.16, the first option leg uses a $29.60 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPRX 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 CPRX shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$29.60N/A

CPRX 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.

CPRX cash-secured put payoff curve

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

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

CPRX thesis for this cash-secured put

The market-implied 1-standard-deviation range for CPRX extends from approximately $30.70 on the downside to $31.62 on the upside. A CPRX cash-secured put lets a trader earn premium while waiting to acquire CPRX 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 CPRX IV rank near 0.92% 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 CPRX at 5.20%. As a Healthcare name, CPRX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPRX-specific events.

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

Frequently asked questions

What is a cash-secured put on CPRX?
A cash-secured put on CPRX is the cash-secured put strategy applied to CPRX (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 CPRX stock trading near $31.16, the strikes shown on this page are snapped to the nearest listed CPRX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CPRX 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 CPRX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 5.20%), 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 CPRX cash-secured put?
The breakeven for the CPRX 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 CPRX market-implied 1-standard-deviation expected move is approximately 1.49%; 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 CPRX?
Cash-secured puts on CPRX earn premium while a trader waits to acquire CPRX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CPRX.
How does current CPRX implied volatility affect this cash-secured put?
CPRX ATM IV is at 5.20% with IV rank near 0.92%, 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.

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