MD Cash-Secured Put Strategy
MD (Pediatrix Medical Group, Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NYSE.
Pediatrix Medical Group, Inc. delivers specialized medical services for newborns, expectant mothers, and pediatric patients across the United States and Puerto Rico. The company offers crucial neonatal care to critically ill or prematurely born infants within hospital units, staffed by expert neonatal subspecialists and advanced practice clinicians. For pregnant individuals and their developing babies, Pediatrix provides comprehensive maternal-fetal medicine services in both clinical and inpatient settings, involving specialists such as maternal-fetal medicine physicians, obstetricians, and genetic counselors. Furthermore, the group delivers pediatric cardiology services, addressing both congenital and acquired heart conditions in patients ranging from the fetal stage through adulthood, under the care of dedicated pediatric cardiologists. Beyond these core areas, Pediatrix extends its expertise to various other pediatric subspecialties, including those requiring intensivists, surgeons, and ophthalmologists, and supplies vital support to hospital departments like emergency rooms and labor and delivery units. Established in 1979 in Sunrise, Florida, and formerly known as MEDNAX, Inc. until its renaming in July 2022, the company managed a network of approximately 2,700 physicians as of February 2022.
MD (Pediatrix Medical Group, Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $2.03B, a trailing P/E of 11.77, a beta of 0.70 versus the broader market, a 52-week range of 11.84-24.99, average daily share volume of 798K, a public-listing history dating back to 1995, approximately 4K full-time employees. These structural characteristics shape how MD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.70 indicates MD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.77 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a cash-secured put on MD?
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 MD snapshot
As of June 29, 2026, spot at $24.52, ATM IV 41.20%, IV rank 12.63%, expected move 11.81%. The cash-secured put on MD 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 18-day expiry.
Why this cash-secured put structure on MD specifically: MD IV at 41.20% is on the cheap side of its 1-year range, which means a premium-selling MD cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 11.81% (roughly $2.90 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MD expiries trade a higher absolute premium for lower per-day decay. Position sizing on MD should anchor to the underlying notional of $24.52 per share and to the trader's directional view on MD stock.
MD cash-secured put setup
The MD 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 MD near $24.52, the first option leg uses a $23.29 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MD chain at a 18-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 MD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $23.29 | N/A |
MD 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.
MD cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on MD. 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 MD
Cash-secured puts on MD earn premium while a trader waits to acquire MD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning MD.
MD thesis for this cash-secured put
The market-implied 1-standard-deviation range for MD extends from approximately $21.62 on the downside to $27.42 on the upside. A MD cash-secured put lets a trader earn premium while waiting to acquire MD 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 MD IV rank near 12.63% 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 MD at 41.20%. As a Healthcare name, MD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MD-specific events.
MD 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. MD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MD alongside the broader basket even when MD-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on MD carry tail risk when realized volatility exceeds the implied move; review historical MD earnings reactions and macro stress periods before sizing. Always rebuild the position from current MD chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on MD?
- A cash-secured put on MD is the cash-secured put strategy applied to MD (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 MD stock trading near $24.52, the strikes shown on this page are snapped to the nearest listed MD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MD 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 MD cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 41.20%), 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 MD cash-secured put?
- The breakeven for the MD 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 MD market-implied 1-standard-deviation expected move is approximately 11.81%; 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 MD?
- Cash-secured puts on MD earn premium while a trader waits to acquire MD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning MD.
- How does current MD implied volatility affect this cash-secured put?
- MD ATM IV is at 41.20% with IV rank near 12.63%, 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.