MDGL Long Put Strategy
MDGL (Madrigal Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Madrigal Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapeutic candidates for the treatment of cardiovascular, metabolic, and liver diseases. Its lead product candidate is resmetirom, a liver-directed selective thyroid hormone receptor-ß agonist, which is in Phase III clinical trials for the treatment of non-alcoholic steatohepatitis. The company also develops MGL-3745, a backup compound to resmetirom. It has research, development, and commercialization agreement with Hoffmann-La Roche. Madrigal Pharmaceuticals, Inc. is headquartered in West Conshohocken, Pennsylvania.
MDGL (Madrigal Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $11.96B, a beta of -1.05 versus the broader market, a 52-week range of 265-615, average daily share volume of 349K, a public-listing history dating back to 2007, approximately 528 full-time employees. These structural characteristics shape how MDGL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -1.05 indicates MDGL 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 long put on MDGL?
A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.
Current MDGL snapshot
As of May 15, 2026, spot at $526.50, ATM IV 42.90%, IV rank 13.39%, expected move 12.30%. The long put on MDGL 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 long put structure on MDGL specifically: MDGL IV at 42.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a MDGL long put, with a market-implied 1-standard-deviation move of approximately 12.30% (roughly $64.75 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 MDGL expiries trade a higher absolute premium for lower per-day decay. Position sizing on MDGL should anchor to the underlying notional of $526.50 per share and to the trader's directional view on MDGL stock.
MDGL long put setup
The MDGL long 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 MDGL near $526.50, the first option leg uses a $530.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MDGL 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 MDGL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $530.00 | $29.10 |
MDGL long put risk and reward
- Net Premium / Debit
- -$2,910.00
- Max Profit (per contract)
- $50,089.00
- Max Loss (per contract)
- -$2,910.00
- Breakeven(s)
- $500.90
- Risk / Reward Ratio
- 17.213
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
MDGL long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on MDGL. 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% | +$50,089.00 |
| $116.42 | -77.9% | +$38,447.90 |
| $232.83 | -55.8% | +$26,806.81 |
| $349.24 | -33.7% | +$15,165.71 |
| $465.65 | -11.6% | +$3,524.62 |
| $582.06 | +10.6% | -$2,910.00 |
| $698.48 | +32.7% | -$2,910.00 |
| $814.89 | +54.8% | -$2,910.00 |
| $931.30 | +76.9% | -$2,910.00 |
| $1,047.71 | +99.0% | -$2,910.00 |
When traders use long put on MDGL
Long puts on MDGL hedge an existing long MDGL stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying MDGL exposure being hedged.
MDGL thesis for this long put
The market-implied 1-standard-deviation range for MDGL extends from approximately $461.75 on the downside to $591.25 on the upside. A MDGL long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long MDGL position with one put per 100 shares held. Current MDGL IV rank near 13.39% 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 MDGL at 42.90%. As a Healthcare name, MDGL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MDGL-specific events.
MDGL long put positions are structurally bearish; 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. MDGL positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MDGL alongside the broader basket even when MDGL-specific fundamentals are unchanged. Long-premium structures like a long put on MDGL are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current MDGL chain quotes before placing a trade.
Frequently asked questions
- What is a long put on MDGL?
- A long put on MDGL is the long put strategy applied to MDGL (stock). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. With MDGL stock trading near $526.50, the strikes shown on this page are snapped to the nearest listed MDGL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MDGL long put max profit and max loss calculated?
- Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the MDGL long put priced from the end-of-day chain at a 30-day expiry (ATM IV 42.90%), the computed maximum profit is $50,089.00 per contract and the computed maximum loss is -$2,910.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MDGL long put?
- The breakeven for the MDGL long put priced on this page is roughly $500.90 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 MDGL market-implied 1-standard-deviation expected move is approximately 12.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long put on MDGL?
- Long puts on MDGL hedge an existing long MDGL stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying MDGL exposure being hedged.
- How does current MDGL implied volatility affect this long put?
- MDGL ATM IV is at 42.90% with IV rank near 13.39%, 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.