FHTX Cash-Secured Put Strategy
FHTX (Foghorn Therapeutics Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Foghorn Therapeutics Inc., a clinical-stage biopharmaceutical company, discovers and develops medicines targeting genetically determined dependencies within the chromatin regulatory system. The company uses its proprietary Gene Traffic Control platform to identify, validate, and potentially drug targets within the system. It is developing FHD-286, a small molecule inhibitor of the enzymatic activity of BRG1 and BRM for the treatment of metastatic uveal melanoma and relapsed and/or refractory acute myeloid leukemia and myelodysplastic syndrome; and FHD-609, a small molecule protein degrader for BRD9 to treat patients with synovial sarcoma. The company is also developing an enzymatic inhibitor and a protein degrader as selective modulators of BRM; and ARID1B selective modulators for the treatment of ovarian, endometrial, colorectal, bladder, and gastric cancers. It has a research collaboration and license agreement with Merck Sharp & Dohme Corp. to discover and develop novel oncology therapeutics against a transcription factor target; and with Loxo Oncology to create novel oncology medicines. Foghorn Therapeutics Inc. was incorporated in 2015 and is headquartered in Cambridge, Massachusetts.
FHTX (Foghorn Therapeutics Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $244.8M, a beta of 2.97 versus the broader market, a 52-week range of 3.27-6.95, average daily share volume of 148K, a public-listing history dating back to 2020, approximately 112 full-time employees. These structural characteristics shape how FHTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.97 indicates FHTX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a cash-secured put on FHTX?
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 FHTX snapshot
As of May 15, 2026, spot at $3.83, ATM IV 22.10%, IV rank 0.97%, expected move 6.34%. The cash-secured put on FHTX 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 FHTX specifically: FHTX IV at 22.10% is on the cheap side of its 1-year range, which means a premium-selling FHTX cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.34% (roughly $0.24 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 FHTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on FHTX should anchor to the underlying notional of $3.83 per share and to the trader's directional view on FHTX stock.
FHTX cash-secured put setup
The FHTX 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 FHTX near $3.83, the first option leg uses a $3.64 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FHTX 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 FHTX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $3.64 | N/A |
FHTX 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.
FHTX cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on FHTX. 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 FHTX
Cash-secured puts on FHTX earn premium while a trader waits to acquire FHTX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FHTX.
FHTX thesis for this cash-secured put
The market-implied 1-standard-deviation range for FHTX extends from approximately $3.59 on the downside to $4.07 on the upside. A FHTX cash-secured put lets a trader earn premium while waiting to acquire FHTX 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 FHTX IV rank near 0.97% 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 FHTX at 22.10%. As a Healthcare name, FHTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FHTX-specific events.
FHTX 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. FHTX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FHTX alongside the broader basket even when FHTX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on FHTX carry tail risk when realized volatility exceeds the implied move; review historical FHTX earnings reactions and macro stress periods before sizing. Always rebuild the position from current FHTX chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on FHTX?
- A cash-secured put on FHTX is the cash-secured put strategy applied to FHTX (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 FHTX stock trading near $3.83, the strikes shown on this page are snapped to the nearest listed FHTX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FHTX 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 FHTX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 22.10%), 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 FHTX cash-secured put?
- The breakeven for the FHTX 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 FHTX market-implied 1-standard-deviation expected move is approximately 6.34%; 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 FHTX?
- Cash-secured puts on FHTX earn premium while a trader waits to acquire FHTX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FHTX.
- How does current FHTX implied volatility affect this cash-secured put?
- FHTX ATM IV is at 22.10% with IV rank near 0.97%, 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.