IRMD Cash-Secured Put Strategy
IRMD (IRadimed Corporation), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
IRADIMED CORPORATION develops, manufactures, markets, and distributes magnetic resonance imaging (MRI) compatible medical devices, and related accessories and services in the United States and internationally. It offers MRidium MRI compatible intravenous (IV) infusion pump system with associated disposable IV tubing sets; and MRI compatible patient vital signs monitoring system. The company also provides non-magnetic IV poles, wireless remote displays/controls, side car pump modules, dose error reduction systems, and SpO2 monitoring with sensors and accessories. It serves hospitals, acute care facilities, and outpatient imaging centers. The company sells its products through direct field sales representatives, regional sales directors, clinical support representatives, and independent distributors. IRADIMED CORPORATION was incorporated in 1992 and is headquartered in Winter Springs, Florida.
IRMD (IRadimed Corporation) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $1.09B, a trailing P/E of 46.17, a beta of 0.91 versus the broader market, a 52-week range of 50.88-107.9, average daily share volume of 92K, a public-listing history dating back to 2014, approximately 160 full-time employees. These structural characteristics shape how IRMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.91 places IRMD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 46.17 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. IRMD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a cash-secured put on IRMD?
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 IRMD snapshot
As of May 15, 2026, spot at $86.40, ATM IV 41.50%, IV rank 4.98%, expected move 11.90%. The cash-secured put on IRMD 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 63-day expiry.
Why this cash-secured put structure on IRMD specifically: IRMD IV at 41.50% is on the cheap side of its 1-year range, which means a premium-selling IRMD cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 11.90% (roughly $10.28 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IRMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on IRMD should anchor to the underlying notional of $86.40 per share and to the trader's directional view on IRMD stock.
IRMD cash-secured put setup
The IRMD 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 IRMD near $86.40, the first option leg uses a $84.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IRMD chain at a 63-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 IRMD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $84.50 | $4.25 |
IRMD cash-secured put risk and reward
- Net Premium / Debit
- +$425.00
- Max Profit (per contract)
- $425.00
- Max Loss (per contract)
- -$8,024.00
- Breakeven(s)
- $80.25
- Risk / Reward Ratio
- 0.053
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
IRMD cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on IRMD. 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 | -100.0% | -$8,024.00 |
| $19.11 | -77.9% | -$6,113.76 |
| $38.21 | -55.8% | -$4,203.52 |
| $57.32 | -33.7% | -$2,293.28 |
| $76.42 | -11.6% | -$383.04 |
| $95.52 | +10.6% | +$425.00 |
| $114.62 | +32.7% | +$425.00 |
| $133.73 | +54.8% | +$425.00 |
| $152.83 | +76.9% | +$425.00 |
| $171.93 | +99.0% | +$425.00 |
When traders use cash-secured put on IRMD
Cash-secured puts on IRMD earn premium while a trader waits to acquire IRMD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning IRMD.
IRMD thesis for this cash-secured put
The market-implied 1-standard-deviation range for IRMD extends from approximately $76.12 on the downside to $96.68 on the upside. A IRMD cash-secured put lets a trader earn premium while waiting to acquire IRMD 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 IRMD IV rank near 4.98% 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 IRMD at 41.50%. As a Healthcare name, IRMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IRMD-specific events.
IRMD 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. IRMD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IRMD alongside the broader basket even when IRMD-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on IRMD carry tail risk when realized volatility exceeds the implied move; review historical IRMD earnings reactions and macro stress periods before sizing. Always rebuild the position from current IRMD chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on IRMD?
- A cash-secured put on IRMD is the cash-secured put strategy applied to IRMD (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 IRMD stock trading near $86.40, the strikes shown on this page are snapped to the nearest listed IRMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IRMD 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 IRMD cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 41.50%), the computed maximum profit is $425.00 per contract and the computed maximum loss is -$8,024.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IRMD cash-secured put?
- The breakeven for the IRMD cash-secured put priced on this page is roughly $80.25 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 IRMD market-implied 1-standard-deviation expected move is approximately 11.90%; 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 IRMD?
- Cash-secured puts on IRMD earn premium while a trader waits to acquire IRMD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning IRMD.
- How does current IRMD implied volatility affect this cash-secured put?
- IRMD ATM IV is at 41.50% with IV rank near 4.98%, 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.