EHTH Cash-Secured Put Strategy
EHTH (eHealth, Inc.), in the Financial Services sector, (Insurance - Brokers industry), listed on NASDAQ.
eHealth, Inc. operates a health insurance marketplace that provides consumer engagement, education, and health insurance enrollment solutions in the United States. The company operates in two segments, Medicare; and Individual, Family and Small Business. Its ecommerce platforms organize and present health insurance information in various formats that enable individuals, families, and small businesses to research, analyze, compare, and purchase a range of health insurance plans. The company operates a marketplace that offers consumers a choice of insurance products, such as Medicare Advantage, Medicare Supplement, Medicare Part D prescription drug, individual and family, small business, and other ancillary health insurance products from health insurance carriers. It markets health insurance plans through its websites, including eHealth.com, eHealthInsurance.com, eHealthMedicare.com, Medicare.com, PlanPrescriber.com, and GoMedigap.com, as well as through a network of marketing partners. The company also licenses its health insurance ecommerce technology that enables health insurance carriers to market and distribute health insurance plans online; and provides online sponsorship and advertising, and lead referral services. eHealth, Inc. was incorporated in 1997 and is headquartered in Santa Clara, California.
EHTH (eHealth, Inc.) trades in the Financial Services sector, specifically Insurance - Brokers, with a market capitalization of approximately $58.7M, a trailing P/E of 1.71, a beta of 1.57 versus the broader market, a 52-week range of 1.2-5.89, average daily share volume of 797K, a public-listing history dating back to 2006, approximately 2K full-time employees. These structural characteristics shape how EHTH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.57 indicates EHTH 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 1.71 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 EHTH?
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 EHTH snapshot
As of May 15, 2026, spot at $1.77, ATM IV 211.10%, IV rank 65.42%, expected move 60.52%. The cash-secured put on EHTH 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 EHTH specifically: EHTH IV at 211.10% is mid-range versus its 1-year history, so the credit collected on a EHTH cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 60.52% (roughly $1.07 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 EHTH expiries trade a higher absolute premium for lower per-day decay. Position sizing on EHTH should anchor to the underlying notional of $1.77 per share and to the trader's directional view on EHTH stock.
EHTH cash-secured put setup
The EHTH 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 EHTH near $1.77, the first option leg uses a $1.68 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EHTH 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 EHTH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $1.68 | N/A |
EHTH 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.
EHTH cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on EHTH. 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 EHTH
Cash-secured puts on EHTH earn premium while a trader waits to acquire EHTH stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning EHTH.
EHTH thesis for this cash-secured put
The market-implied 1-standard-deviation range for EHTH extends from approximately $0.70 on the downside to $2.84 on the upside. A EHTH cash-secured put lets a trader earn premium while waiting to acquire EHTH 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 EHTH IV rank near 65.42% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on EHTH should anchor more to the directional view and the expected-move geometry. As a Financial Services name, EHTH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EHTH-specific events.
EHTH 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. EHTH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EHTH alongside the broader basket even when EHTH-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on EHTH carry tail risk when realized volatility exceeds the implied move; review historical EHTH earnings reactions and macro stress periods before sizing. Always rebuild the position from current EHTH chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on EHTH?
- A cash-secured put on EHTH is the cash-secured put strategy applied to EHTH (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 EHTH stock trading near $1.77, the strikes shown on this page are snapped to the nearest listed EHTH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EHTH 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 EHTH cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 211.10%), 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 EHTH cash-secured put?
- The breakeven for the EHTH 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 EHTH market-implied 1-standard-deviation expected move is approximately 60.52%; 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 EHTH?
- Cash-secured puts on EHTH earn premium while a trader waits to acquire EHTH stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning EHTH.
- How does current EHTH implied volatility affect this cash-secured put?
- EHTH ATM IV is at 211.10% with IV rank near 65.42%, 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.