LYEL Cash-Secured Put Strategy
LYEL (Lyell Immunopharma, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Lyell Immunopharma, Inc., a T cell reprogramming company, engages in developing T cell therapies for patients with solid tumors. The company develops therapies using technology platforms, such as Gen-R, an ex vivo genetic reprogramming technology to overcome T cell exhaustion; and Epi-R, an ex vivo epigenetic reprogramming technology to generate population of T cells with durable stemness. Its pipeline includes LYL797, a T cell product candidate for the treatment of non-small cell lung cancer and triple negative breast cancers; LYL845, that targets multiple solid tumors; and NY-ESO-1 for synovial sarcoma and other solid tumor indications. The company entered into research and development collaboration and license agreement with GlaxoSmithKline for NY-ESO-1 program. Lyell Immunopharma, Inc. was incorporated in 2018 and is headquartered in South San Francisco, California.
LYEL (Lyell Immunopharma, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $448.9M, a beta of -0.06 versus the broader market, a 52-week range of 7.65-45, average daily share volume of 95K, a public-listing history dating back to 2021, approximately 300 full-time employees. These structural characteristics shape how LYEL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.06 indicates LYEL 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 LYEL?
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 LYEL snapshot
As of May 15, 2026, spot at $18.01, ATM IV 151.00%, IV rank 30.79%, expected move 43.29%. The cash-secured put on LYEL 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 LYEL specifically: LYEL IV at 151.00% is mid-range versus its 1-year history, so the credit collected on a LYEL cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 43.29% (roughly $7.80 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 LYEL expiries trade a higher absolute premium for lower per-day decay. Position sizing on LYEL should anchor to the underlying notional of $18.01 per share and to the trader's directional view on LYEL stock.
LYEL cash-secured put setup
The LYEL 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 LYEL near $18.01, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LYEL 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 LYEL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $17.00 | $2.90 |
LYEL cash-secured put risk and reward
- Net Premium / Debit
- +$290.00
- Max Profit (per contract)
- $290.00
- Max Loss (per contract)
- -$1,409.00
- Breakeven(s)
- $14.10
- Risk / Reward Ratio
- 0.206
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
LYEL cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on LYEL. 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 | -99.9% | -$1,409.00 |
| $3.99 | -77.8% | -$1,010.90 |
| $7.97 | -55.7% | -$612.80 |
| $11.95 | -33.6% | -$214.70 |
| $15.93 | -11.5% | +$183.40 |
| $19.92 | +10.6% | +$290.00 |
| $23.90 | +32.7% | +$290.00 |
| $27.88 | +54.8% | +$290.00 |
| $31.86 | +76.9% | +$290.00 |
| $35.84 | +99.0% | +$290.00 |
When traders use cash-secured put on LYEL
Cash-secured puts on LYEL earn premium while a trader waits to acquire LYEL stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LYEL.
LYEL thesis for this cash-secured put
The market-implied 1-standard-deviation range for LYEL extends from approximately $10.21 on the downside to $25.81 on the upside. A LYEL cash-secured put lets a trader earn premium while waiting to acquire LYEL 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 LYEL IV rank near 30.79% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on LYEL should anchor more to the directional view and the expected-move geometry. As a Healthcare name, LYEL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LYEL-specific events.
LYEL 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. LYEL positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LYEL alongside the broader basket even when LYEL-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on LYEL carry tail risk when realized volatility exceeds the implied move; review historical LYEL earnings reactions and macro stress periods before sizing. Always rebuild the position from current LYEL chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on LYEL?
- A cash-secured put on LYEL is the cash-secured put strategy applied to LYEL (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 LYEL stock trading near $18.01, the strikes shown on this page are snapped to the nearest listed LYEL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LYEL 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 LYEL cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 151.00%), the computed maximum profit is $290.00 per contract and the computed maximum loss is -$1,409.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LYEL cash-secured put?
- The breakeven for the LYEL cash-secured put priced on this page is roughly $14.10 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 LYEL market-implied 1-standard-deviation expected move is approximately 43.29%; 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 LYEL?
- Cash-secured puts on LYEL earn premium while a trader waits to acquire LYEL stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning LYEL.
- How does current LYEL implied volatility affect this cash-secured put?
- LYEL ATM IV is at 151.00% with IV rank near 30.79%, 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.