MDB Cash-Secured Put Strategy
MDB (MongoDB, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
MongoDB, Inc. provides general purpose database platform worldwide. The company offers MongoDB Enterprise Advanced, a commercial database server for enterprise customers to run in the cloud, on-premise, or in a hybrid environment; MongoDB Atlas, a hosted multi-cloud database-as-a-service solution; and Community Server, a free-to-download version of its database, which includes the functionality that developers need to get started with MongoDB. It also provides professional services comprising consulting and training. The company was formerly known as 10gen, Inc. and changed its name to MongoDB, Inc. in August 2013. MongoDB, Inc. was incorporated in 2007 and is headquartered in New York, New York.
MDB (MongoDB, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $24.35B, a beta of 1.49 versus the broader market, a 52-week range of 182.43-444.72, average daily share volume of 1.9M, a public-listing history dating back to 2017, approximately 6K full-time employees. These structural characteristics shape how MDB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.49 indicates MDB has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a cash-secured put on MDB?
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 MDB snapshot
As of May 15, 2026, spot at $311.96, ATM IV 91.11%, IV rank 87.87%, expected move 26.12%. The cash-secured put on MDB 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 28-day expiry.
Why this cash-secured put structure on MDB specifically: MDB IV at 91.11% is rich versus its 1-year range, which favors premium-selling structures like a MDB cash-secured put, with a market-implied 1-standard-deviation move of approximately 26.12% (roughly $81.48 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MDB expiries trade a higher absolute premium for lower per-day decay. Position sizing on MDB should anchor to the underlying notional of $311.96 per share and to the trader's directional view on MDB stock.
MDB cash-secured put setup
The MDB 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 MDB near $311.96, the first option leg uses a $295.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MDB chain at a 28-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 MDB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $295.00 | $22.60 |
MDB cash-secured put risk and reward
- Net Premium / Debit
- +$2,260.00
- Max Profit (per contract)
- $2,260.00
- Max Loss (per contract)
- -$27,239.00
- Breakeven(s)
- $272.40
- Risk / Reward Ratio
- 0.083
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
MDB cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on MDB. 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% | -$27,239.00 |
| $68.98 | -77.9% | -$20,341.50 |
| $137.96 | -55.8% | -$13,444.01 |
| $206.93 | -33.7% | -$6,546.51 |
| $275.91 | -11.6% | +$350.99 |
| $344.88 | +10.6% | +$2,260.00 |
| $413.86 | +32.7% | +$2,260.00 |
| $482.83 | +54.8% | +$2,260.00 |
| $551.81 | +76.9% | +$2,260.00 |
| $620.78 | +99.0% | +$2,260.00 |
When traders use cash-secured put on MDB
Cash-secured puts on MDB earn premium while a trader waits to acquire MDB stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning MDB.
MDB thesis for this cash-secured put
The market-implied 1-standard-deviation range for MDB extends from approximately $230.48 on the downside to $393.44 on the upside. A MDB cash-secured put lets a trader earn premium while waiting to acquire MDB 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 MDB IV rank near 87.87% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on MDB at 91.11%. As a Technology name, MDB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MDB-specific events.
MDB 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. MDB positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MDB alongside the broader basket even when MDB-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on MDB carry tail risk when realized volatility exceeds the implied move; review historical MDB earnings reactions and macro stress periods before sizing. Always rebuild the position from current MDB chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on MDB?
- A cash-secured put on MDB is the cash-secured put strategy applied to MDB (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 MDB stock trading near $311.96, the strikes shown on this page are snapped to the nearest listed MDB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MDB 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 MDB cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 91.11%), the computed maximum profit is $2,260.00 per contract and the computed maximum loss is -$27,239.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MDB cash-secured put?
- The breakeven for the MDB cash-secured put priced on this page is roughly $272.40 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 MDB market-implied 1-standard-deviation expected move is approximately 26.12%; 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 MDB?
- Cash-secured puts on MDB earn premium while a trader waits to acquire MDB stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning MDB.
- How does current MDB implied volatility affect this cash-secured put?
- MDB ATM IV is at 91.11% with IV rank near 87.87%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.