CRMD Cash-Secured Put Strategy
CRMD (CorMedix Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
CorMedix Inc., a biopharmaceutical company, focuses on developing and commercializing therapeutic products for the prevention and treatment of infectious and inflammatory diseases in the United States and internationally. Its lead product candidate is DefenCath/Neutrolin, a novel anti-infective solution for the reduction and prevention of catheter-related infections and thrombosis in patients requiring central venous catheters in clinical settings, such as hemodialysis, total parenteral nutrition, and oncology. The company was formerly known as Picton Holding Company, Inc. and changed its name to CorMedix, Inc. in January 2007. CorMedix Inc. was incorporated in 2006 and is based in Berkeley Heights, New Jersey.
CRMD (CorMedix Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $588.3M, a trailing P/E of 3.63, a beta of 1.46 versus the broader market, a 52-week range of 6.13-17.43, average daily share volume of 1.3M, a public-listing history dating back to 2010, approximately 64 full-time employees. These structural characteristics shape how CRMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.46 indicates CRMD 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 3.63 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 CRMD?
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 CRMD snapshot
As of May 15, 2026, spot at $7.55, ATM IV 50.60%, IV rank 4.91%, expected move 14.51%. The cash-secured put on CRMD 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 CRMD specifically: CRMD IV at 50.60% is on the cheap side of its 1-year range, which means a premium-selling CRMD cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 14.51% (roughly $1.10 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 CRMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRMD should anchor to the underlying notional of $7.55 per share and to the trader's directional view on CRMD stock.
CRMD cash-secured put setup
The CRMD 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 CRMD near $7.55, the first option leg uses a $7.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRMD 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 CRMD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $7.00 | $0.25 |
CRMD cash-secured put risk and reward
- Net Premium / Debit
- +$25.00
- Max Profit (per contract)
- $25.00
- Max Loss (per contract)
- -$674.00
- Breakeven(s)
- $6.75
- Risk / Reward Ratio
- 0.037
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
CRMD cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on CRMD. 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% | -$674.00 |
| $1.68 | -77.8% | -$507.18 |
| $3.35 | -55.7% | -$340.35 |
| $5.01 | -33.6% | -$173.53 |
| $6.68 | -11.5% | -$6.70 |
| $8.35 | +10.6% | +$25.00 |
| $10.02 | +32.7% | +$25.00 |
| $11.69 | +54.8% | +$25.00 |
| $13.36 | +76.9% | +$25.00 |
| $15.02 | +99.0% | +$25.00 |
When traders use cash-secured put on CRMD
Cash-secured puts on CRMD earn premium while a trader waits to acquire CRMD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CRMD.
CRMD thesis for this cash-secured put
The market-implied 1-standard-deviation range for CRMD extends from approximately $6.45 on the downside to $8.65 on the upside. A CRMD cash-secured put lets a trader earn premium while waiting to acquire CRMD 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 CRMD IV rank near 4.91% 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 CRMD at 50.60%. As a Healthcare name, CRMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRMD-specific events.
CRMD 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. CRMD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CRMD alongside the broader basket even when CRMD-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on CRMD carry tail risk when realized volatility exceeds the implied move; review historical CRMD earnings reactions and macro stress periods before sizing. Always rebuild the position from current CRMD chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on CRMD?
- A cash-secured put on CRMD is the cash-secured put strategy applied to CRMD (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 CRMD stock trading near $7.55, the strikes shown on this page are snapped to the nearest listed CRMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CRMD 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 CRMD cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 50.60%), the computed maximum profit is $25.00 per contract and the computed maximum loss is -$674.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CRMD cash-secured put?
- The breakeven for the CRMD cash-secured put priced on this page is roughly $6.75 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 CRMD market-implied 1-standard-deviation expected move is approximately 14.51%; 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 CRMD?
- Cash-secured puts on CRMD earn premium while a trader waits to acquire CRMD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning CRMD.
- How does current CRMD implied volatility affect this cash-secured put?
- CRMD ATM IV is at 50.60% with IV rank near 4.91%, 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.