EVH Cash-Secured Put Strategy
EVH (Evolent Health, Inc.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NYSE.
Evolent Health, Inc., a prominent healthcare firm, operates through its subsidiary, Evolent Health LLC, to furnish clinical and administrative solutions to both healthcare payers and providers across the United States. Its operations are divided into two principal segments: Evolent Health Services and Clinical Solutions. The Evolent Health Services division delivers an integrated platform encompassing both administrative and clinical functions, specifically designed for health plan management and the oversight of population health. This includes essential financial and administrative support, such as managing health plan operations, risk assessment, robust analytics and reporting, and strategic leadership. A cornerstone of this segment is "Identifi," its proprietary technology, which intelligently aggregates and analyzes data, streamlines care workflows, and actively engages patients, all with the aim of achieving patient-centered and cost-effective population health outcomes. Conversely, the Clinical Solutions segment specializes in offering sophisticated care management services for various stakeholders involved in specialty care delivery.
EVH (Evolent Health, Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $619.8M, a beta of 0.83 versus the broader market, a 52-week range of 2.095-12.065, average daily share volume of 2.7M, a public-listing history dating back to 2015, approximately 5K full-time employees. These structural characteristics shape how EVH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.83 places EVH 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 EVH?
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 EVH snapshot
As of June 30, 2026, spot at $5.33, ATM IV 82.30%, IV rank 24.66%, expected move 23.59%. The cash-secured put on EVH 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 199-day expiry.
Why this cash-secured put structure on EVH specifically: EVH IV at 82.30% is on the cheap side of its 1-year range, which means a premium-selling EVH cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 23.59% (roughly $1.26 on the underlying). The 199-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EVH expiries trade a higher absolute premium for lower per-day decay. Position sizing on EVH should anchor to the underlying notional of $5.33 per share and to the trader's directional view on EVH stock.
EVH cash-secured put setup
The EVH 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 EVH near $5.33, the first option leg uses a $5.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EVH chain at a 199-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 EVH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $5.00 | $1.05 |
EVH cash-secured put risk and reward
- Net Premium / Debit
- +$105.00
- Max Profit (per contract)
- $105.00
- Max Loss (per contract)
- -$394.00
- Breakeven(s)
- $3.95
- Risk / Reward Ratio
- 0.266
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
EVH cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on EVH. 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 | -99.8% | -$394.00 |
| $1.19 | -77.7% | -$276.26 |
| $2.36 | -55.6% | -$158.52 |
| $3.54 | -33.5% | -$40.78 |
| $4.72 | -11.5% | +$76.95 |
| $5.90 | +10.6% | +$105.00 |
| $7.07 | +32.7% | +$105.00 |
| $8.25 | +54.8% | +$105.00 |
| $9.43 | +76.9% | +$105.00 |
| $10.61 | +99.0% | +$105.00 |
When traders use cash-secured put on EVH
Cash-secured puts on EVH earn premium while a trader waits to acquire EVH stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning EVH.
EVH thesis for this cash-secured put
The market-implied 1-standard-deviation range for EVH extends from approximately $4.07 on the downside to $6.59 on the upside. A EVH cash-secured put lets a trader earn premium while waiting to acquire EVH 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 EVH IV rank near 24.66% 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 EVH at 82.30%. As a Healthcare name, EVH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EVH-specific events.
EVH 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. EVH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EVH alongside the broader basket even when EVH-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on EVH carry tail risk when realized volatility exceeds the implied move; review historical EVH earnings reactions and macro stress periods before sizing. Always rebuild the position from current EVH chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on EVH?
- A cash-secured put on EVH is the cash-secured put strategy applied to EVH (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 EVH stock trading near $5.33, the strikes shown on this page are snapped to the nearest listed EVH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EVH 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 EVH cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 82.30%), the computed maximum profit is $105.00 per contract and the computed maximum loss is -$394.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EVH cash-secured put?
- The breakeven for the EVH cash-secured put priced on this page is roughly $3.95 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 EVH market-implied 1-standard-deviation expected move is approximately 23.59%; 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 EVH?
- Cash-secured puts on EVH earn premium while a trader waits to acquire EVH stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning EVH.
- How does current EVH implied volatility affect this cash-secured put?
- EVH ATM IV is at 82.30% with IV rank near 24.66%, 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.