LIVN Cash-Secured Put Strategy
LIVN (LivaNova PLC), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
LivaNova PLC, a medical device company, designs, develops, manufactures, and sells therapeutic solutions worldwide. It operates through three segments: Cardiopulmonary, Neuromodulation, and Advanced Circulatory Support. The Cardiopulmonary segment develops, produces, and sells cardiopulmonary products, including oxygenators, heart-lung machines, autotransfusion systems, perfusion tubing systems, cannulae, connect, and other related products. The Neuromodulation segment designs, develops, and markets VNS Therapy System, an implantable device that delivers vagus nerve stimulation (VNS) therapy for the treatment of drug-resistant epilepsy, difficult-to-treat depression, and obstructive sleep apnea. It is also involved in the development and clinical testing of the VITARIA System for treating heart failure through VNS. The Advanced Circulatory Support segment develops, produces, and sells temporary life support products, such as cardiopulmonary and respiratory support solutions.
LIVN (LivaNova PLC) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $3.98B, a trailing P/E of 36.98, a beta of 0.82 versus the broader market, a 52-week range of 41.015-72.78, average daily share volume of 916K, a public-listing history dating back to 2015, approximately 3K full-time employees. These structural characteristics shape how LIVN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places LIVN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 36.98 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.
What is a cash-secured put on LIVN?
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 LIVN snapshot
As of May 14, 2026, spot at $72.30, ATM IV 32.90%, IV rank 17.35%, expected move 9.43%. The cash-secured put on LIVN 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 LIVN specifically: LIVN IV at 32.90% is on the cheap side of its 1-year range, which means a premium-selling LIVN cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.43% (roughly $6.82 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 LIVN expiries trade a higher absolute premium for lower per-day decay. Position sizing on LIVN should anchor to the underlying notional of $72.30 per share and to the trader's directional view on LIVN stock.
LIVN cash-secured put setup
The LIVN 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 LIVN near $72.30, the first option leg uses a $67.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LIVN 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 LIVN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $67.50 | $1.23 |
LIVN cash-secured put risk and reward
- Net Premium / Debit
- +$122.50
- Max Profit (per contract)
- $122.50
- Max Loss (per contract)
- -$6,626.50
- Breakeven(s)
- $66.28
- Risk / Reward Ratio
- 0.018
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
LIVN cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on LIVN. 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% | -$6,626.50 |
| $15.99 | -77.9% | -$5,028.02 |
| $31.98 | -55.8% | -$3,429.54 |
| $47.96 | -33.7% | -$1,831.05 |
| $63.95 | -11.6% | -$232.57 |
| $79.93 | +10.6% | +$122.50 |
| $95.92 | +32.7% | +$122.50 |
| $111.90 | +54.8% | +$122.50 |
| $127.89 | +76.9% | +$122.50 |
| $143.87 | +99.0% | +$122.50 |
When traders use cash-secured put on LIVN
Cash-secured puts on LIVN earn premium while a trader waits to acquire LIVN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LIVN.
LIVN thesis for this cash-secured put
The market-implied 1-standard-deviation range for LIVN extends from approximately $65.48 on the downside to $79.12 on the upside. A LIVN cash-secured put lets a trader earn premium while waiting to acquire LIVN 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 LIVN IV rank near 17.35% 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 LIVN at 32.90%. As a Healthcare name, LIVN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LIVN-specific events.
LIVN 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. LIVN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LIVN alongside the broader basket even when LIVN-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on LIVN carry tail risk when realized volatility exceeds the implied move; review historical LIVN earnings reactions and macro stress periods before sizing. Always rebuild the position from current LIVN chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on LIVN?
- A cash-secured put on LIVN is the cash-secured put strategy applied to LIVN (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 LIVN stock trading near $72.30, the strikes shown on this page are snapped to the nearest listed LIVN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LIVN 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 LIVN cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 32.90%), the computed maximum profit is $122.50 per contract and the computed maximum loss is -$6,626.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LIVN cash-secured put?
- The breakeven for the LIVN cash-secured put priced on this page is roughly $66.28 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 LIVN market-implied 1-standard-deviation expected move is approximately 9.43%; 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 LIVN?
- Cash-secured puts on LIVN earn premium while a trader waits to acquire LIVN stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LIVN.
- How does current LIVN implied volatility affect this cash-secured put?
- LIVN ATM IV is at 32.90% with IV rank near 17.35%, 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.