LUNG Cash-Secured Put Strategy
LUNG (Pulmonx Corporation), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Pulmonx Corporation is a biomedical technology firm dedicated to developing and commercializing advanced, less invasive devices for managing chronic obstructive pulmonary diseases. Its primary offering, the Zephyr Endobronchial Valve, is specifically engineered to treat bronchoscopic hyperinflation in adults afflicted with severe emphysema. Complementing its therapeutic solutions, the company also provides the Chartis Pulmonary Assessment System. This system features a specialized balloon catheter and console, fitted with flow and pressure sensors, which is instrumental in evaluating the presence of collateral ventilation in patients. Additionally, Pulmonx offers the StratX Lung Analysis Platform, a cloud-based service that conducts quantitative computed tomography (CT) analysis. This platform delivers vital data concerning emphysema destruction, fissure completeness, and lobar volume, thereby aiding clinicians in accurately identifying the most suitable target lobes for treatment with Zephyr Valves.
LUNG (Pulmonx Corporation) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $96.7M, a beta of 0.29 versus the broader market, a 52-week range of 1.13-2.89, average daily share volume of 516K, a public-listing history dating back to 2020, approximately 296 full-time employees. These structural characteristics shape how LUNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.29 indicates LUNG 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 LUNG?
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.
LUNG snapshot
As of August 14, 2026, spot at $2.40, ATM IV 144.70%, IV rank 32.85%, expected move 41.48%. The cash-secured put on LUNG 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 LUNG specifically: LUNG IV at 144.70% is mid-range versus its 1-year history, so the credit collected on a LUNG cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 41.48% (roughly $1.00 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 LUNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on LUNG should anchor to the underlying notional of $2.40 per share and to the trader's directional view on LUNG stock.
LUNG cash-secured put setup
The LUNG 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 LUNG at $2.40 on that close, the first option leg uses a $2.28 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LUNG 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 LUNG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $2.28 | N/A |
LUNG 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.
LUNG cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on LUNG. 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 LUNG
Cash-secured puts on LUNG earn premium while a trader waits to acquire LUNG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LUNG.
LUNG thesis for this cash-secured put
The market-implied 1-standard-deviation range for LUNG extends from approximately $1.40 on the downside to $3.40 on the upside. A LUNG cash-secured put lets a trader earn premium while waiting to acquire LUNG 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 LUNG IV rank near 32.85% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on LUNG should anchor more to the directional view and the expected-move geometry. As a Healthcare name, LUNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LUNG-specific events.
LUNG 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. LUNG positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LUNG alongside the broader basket even when LUNG-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on LUNG carry tail risk when realized volatility exceeds the implied move; review historical LUNG earnings reactions and macro stress periods before sizing. Always rebuild the position from current LUNG chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on LUNG?
- A cash-secured put on LUNG is the cash-secured put strategy applied to LUNG (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 LUNG stock at $2.40 on the most recent close, the strikes shown on this page are snapped to the nearest listed LUNG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are LUNG 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 LUNG cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 144.70%), 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 LUNG cash-secured put?
- The breakeven for the LUNG 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 LUNG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 41.48%; 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 LUNG?
- Cash-secured puts on LUNG earn premium while a trader waits to acquire LUNG stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LUNG.
- How does current LUNG implied volatility affect this cash-secured put?
- LUNG ATM IV is at 144.70% with IV rank near 32.85%, 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.