FLGT Cash-Secured Put Strategy
FLGT (Fulgent Genetics, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
Fulgent Genetics, Inc., together with its affiliated companies, offers a comprehensive suite of COVID-19, molecular diagnostic, and genetic testing services to healthcare providers and individuals globally. Their diverse array of genetic tests covers a wide range of applications, including extensive oncology panels and solid tumor molecular profiling for cancer identification, Beacon carrier screening for inherited conditions, and specialized rapid whole genome testing for critically ill infants in NICU and PICU units. Other offerings include a newborn genetic analysis panel, a front-line test to sequence ataxia-related variants, and patient-initiated genetic testing via Picture Genetics. They also provide comprehensive whole exome, clinical exome, whole genome, mutation, and repeat expansion testing, alongside research service tests. For COVID-19, the company delivers next-generation sequencing, reverse transcription polymerase chain reaction (RT-PCR), and antigen-based diagnostic solutions for SARS-CoV-2. Beyond genetic and COVID-19 diagnostics, Fulgent Genetics performs advanced laboratory analyses such as flow cytometry for cell analysis and malignancy monitoring, fluorescence in-situ hybridization (FISH) for specific DNA sequence detection, immunohistochemistry (IHC) to visualize cellular antigens, and cytogenetics for assessing chromosomal anomalies, in addition to molecular testing for both hematopoietic and solid tumors.
FLGT (Fulgent Genetics, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $531.4M, a beta of 0.91 versus the broader market, a 52-week range of 13.46-31.04, average daily share volume of 431K, a public-listing history dating back to 2016, approximately 1K full-time employees. These structural characteristics shape how FLGT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.91 places FLGT 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 FLGT?
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.
FLGT snapshot
As of August 14, 2026, spot at $18.59, ATM IV 56.90%, IV rank 12.97%, expected move 16.31%. The cash-secured put on FLGT below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this cash-secured put structure on FLGT specifically: FLGT IV at 56.90% is on the cheap side of its 1-year range, which means a premium-selling FLGT cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 16.31% (roughly $3.03 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FLGT expiries trade a higher absolute premium for lower per-day decay. Position sizing on FLGT should anchor to the underlying notional of $18.59 per share and to the trader's directional view on FLGT stock.
FLGT cash-secured put setup
The FLGT 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 FLGT at $18.59 on that close, the first option leg uses a $17.66 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FLGT chain at a 35-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 FLGT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $17.66 | N/A |
FLGT 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.
FLGT cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on FLGT. 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 FLGT
Cash-secured puts on FLGT earn premium while a trader waits to acquire FLGT stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FLGT.
FLGT thesis for this cash-secured put
The market-implied 1-standard-deviation range for FLGT extends from approximately $15.56 on the downside to $21.62 on the upside. A FLGT cash-secured put lets a trader earn premium while waiting to acquire FLGT 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 FLGT IV rank near 12.97% 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 FLGT at 56.90%. As a Healthcare name, FLGT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FLGT-specific events.
FLGT 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. FLGT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FLGT alongside the broader basket even when FLGT-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on FLGT carry tail risk when realized volatility exceeds the implied move; review historical FLGT earnings reactions and macro stress periods before sizing. Always rebuild the position from current FLGT chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on FLGT?
- A cash-secured put on FLGT is the cash-secured put strategy applied to FLGT (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 FLGT stock at $18.59 on the most recent close, the strikes shown on this page are snapped to the nearest listed FLGT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FLGT 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 FLGT cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 56.90%), 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 FLGT cash-secured put?
- The breakeven for the FLGT cash-secured put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The FLGT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.31%; 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 FLGT?
- Cash-secured puts on FLGT earn premium while a trader waits to acquire FLGT stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FLGT.
- How does current FLGT implied volatility affect this cash-secured put?
- FLGT ATM IV is at 56.90% with IV rank near 12.97%, 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.