IRTC Cash-Secured Put Strategy
IRTC (iRhythm Technologies, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
iRhythm Technologies, Inc., a digital healthcare company, provides ambulatory electrocardiogram (ECG) monitoring products for patients at risk for arrhythmias in the United States. It offers Zio service, an ambulatory cardiac monitoring solution that combines a wire-free, patch-based, and wearable biosensor with a cloud-based data analytic platform to help physicians to monitor patients and diagnose arrhythmias. The company's Zio XT and AT monitors, a single-use, wire-free, and wearable patch-based biosensors, records patient's heartbeats and ECG data. It has a development collaboration agreement with Verily Life Sciences LLC to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.
IRTC (iRhythm Technologies, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $3.77B, a beta of 1.33 versus the broader market, a 52-week range of 112.31-212, average daily share volume of 587K, a public-listing history dating back to 2016, approximately 2K full-time employees. These structural characteristics shape how IRTC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.33 indicates IRTC 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 IRTC?
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 IRTC snapshot
As of May 15, 2026, spot at $114.62, ATM IV 48.60%, IV rank 36.37%, expected move 13.93%. The cash-secured put on IRTC 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 IRTC specifically: IRTC IV at 48.60% is mid-range versus its 1-year history, so the credit collected on a IRTC cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 13.93% (roughly $15.97 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 IRTC expiries trade a higher absolute premium for lower per-day decay. Position sizing on IRTC should anchor to the underlying notional of $114.62 per share and to the trader's directional view on IRTC stock.
IRTC cash-secured put setup
The IRTC 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 IRTC near $114.62, the first option leg uses a $110.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IRTC 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 IRTC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $110.00 | $4.70 |
IRTC cash-secured put risk and reward
- Net Premium / Debit
- +$470.00
- Max Profit (per contract)
- $470.00
- Max Loss (per contract)
- -$10,529.00
- Breakeven(s)
- $105.30
- Risk / Reward Ratio
- 0.045
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
IRTC cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on IRTC. 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% | -$10,529.00 |
| $25.35 | -77.9% | -$7,994.80 |
| $50.69 | -55.8% | -$5,460.60 |
| $76.04 | -33.7% | -$2,926.40 |
| $101.38 | -11.6% | -$392.20 |
| $126.72 | +10.6% | +$470.00 |
| $152.06 | +32.7% | +$470.00 |
| $177.40 | +54.8% | +$470.00 |
| $202.75 | +76.9% | +$470.00 |
| $228.09 | +99.0% | +$470.00 |
When traders use cash-secured put on IRTC
Cash-secured puts on IRTC earn premium while a trader waits to acquire IRTC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning IRTC.
IRTC thesis for this cash-secured put
The market-implied 1-standard-deviation range for IRTC extends from approximately $98.65 on the downside to $130.59 on the upside. A IRTC cash-secured put lets a trader earn premium while waiting to acquire IRTC 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 IRTC IV rank near 36.37% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on IRTC should anchor more to the directional view and the expected-move geometry. As a Healthcare name, IRTC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IRTC-specific events.
IRTC 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. IRTC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IRTC alongside the broader basket even when IRTC-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on IRTC carry tail risk when realized volatility exceeds the implied move; review historical IRTC earnings reactions and macro stress periods before sizing. Always rebuild the position from current IRTC chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on IRTC?
- A cash-secured put on IRTC is the cash-secured put strategy applied to IRTC (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 IRTC stock trading near $114.62, the strikes shown on this page are snapped to the nearest listed IRTC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IRTC 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 IRTC cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 48.60%), the computed maximum profit is $470.00 per contract and the computed maximum loss is -$10,529.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IRTC cash-secured put?
- The breakeven for the IRTC cash-secured put priced on this page is roughly $105.30 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 IRTC market-implied 1-standard-deviation expected move is approximately 13.93%; 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 IRTC?
- Cash-secured puts on IRTC earn premium while a trader waits to acquire IRTC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning IRTC.
- How does current IRTC implied volatility affect this cash-secured put?
- IRTC ATM IV is at 48.60% with IV rank near 36.37%, 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.