LNAI Cash-Secured Put Strategy
LNAI (Lunai Bioworks Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
A company rebranding from Renovaro, focusing on AI-powered therapeutics and biodefense, with “Neurotoxicity Intelligence Technology” in development.
LNAI (Lunai Bioworks Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $5.3M, a beta of 0.33 versus the broader market, a 52-week range of 0.151-5.5, average daily share volume of 22.3M, a public-listing history dating back to 2025, approximately 29 full-time employees. These structural characteristics shape how LNAI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.33 indicates LNAI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a cash-secured put on LNAI?
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 LNAI snapshot
As of May 14, 2026, spot at $0.28, ATM IV 17.50%, IV rank 0.00%, expected move 5.02%. The cash-secured put on LNAI 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 35-day expiry.
Why this cash-secured put structure on LNAI specifically: LNAI IV at 17.50% is on the cheap side of its 1-year range, which means a premium-selling LNAI cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.02% (roughly $0.01 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 LNAI expiries trade a higher absolute premium for lower per-day decay. Position sizing on LNAI should anchor to the underlying notional of $0.28 per share and to the trader's directional view on LNAI stock.
LNAI cash-secured put setup
The LNAI 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 LNAI near $0.28, the first option leg uses a $0.27 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LNAI 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 LNAI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $0.27 | N/A |
LNAI 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.
LNAI cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on LNAI. 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 LNAI
Cash-secured puts on LNAI earn premium while a trader waits to acquire LNAI stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LNAI.
LNAI thesis for this cash-secured put
The market-implied 1-standard-deviation range for LNAI extends from approximately $0.27 on the downside to $0.29 on the upside. A LNAI cash-secured put lets a trader earn premium while waiting to acquire LNAI 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 LNAI IV rank near 0.00% 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 LNAI at 17.50%. As a Healthcare name, LNAI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LNAI-specific events.
LNAI 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. LNAI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LNAI alongside the broader basket even when LNAI-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on LNAI carry tail risk when realized volatility exceeds the implied move; review historical LNAI earnings reactions and macro stress periods before sizing. Always rebuild the position from current LNAI chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on LNAI?
- A cash-secured put on LNAI is the cash-secured put strategy applied to LNAI (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 LNAI stock trading near $0.28, the strikes shown on this page are snapped to the nearest listed LNAI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LNAI 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 LNAI cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 17.50%), 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 LNAI cash-secured put?
- The breakeven for the LNAI 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 LNAI market-implied 1-standard-deviation expected move is approximately 5.02%; 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 LNAI?
- Cash-secured puts on LNAI earn premium while a trader waits to acquire LNAI stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LNAI.
- How does current LNAI implied volatility affect this cash-secured put?
- LNAI ATM IV is at 17.50% with IV rank near 0.00%, 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.