MDWD Cash-Secured Put Strategy
MDWD (MediWound Ltd.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
MediWound Ltd., a biopharmaceutical company, develops, manufactures, and commercializes novel and bio-therapeutic solutions for tissue repair and regeneration. It markets NexoBrid, a biopharmaceutical product for the removal of eschar, a dead or damaged tissue in adults with deep partial- and full-thickness thermal burns to burn centers and hospitals burn units. The company also develops EscharEx, which has completed Phase II clinical trials for the debridement of chronic and other hard-to-heal wounds; MW005, which is in phase I/II for the treatment of low-risk basal cell carcinoma. MediWound Ltd. was founded in 2000 and is headquartered in Yavne, Israel.
MDWD (MediWound Ltd.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $176.5M, a beta of 0.22 versus the broader market, a 52-week range of 14.9-22.505, average daily share volume of 86K, a public-listing history dating back to 2014, approximately 111 full-time employees. These structural characteristics shape how MDWD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.22 indicates MDWD 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 MDWD?
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 MDWD snapshot
As of May 15, 2026, spot at $16.57, ATM IV 51.30%, IV rank 5.44%, expected move 14.71%. The cash-secured put on MDWD 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 126-day expiry.
Why this cash-secured put structure on MDWD specifically: MDWD IV at 51.30% is on the cheap side of its 1-year range, which means a premium-selling MDWD cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 14.71% (roughly $2.44 on the underlying). The 126-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MDWD expiries trade a higher absolute premium for lower per-day decay. Position sizing on MDWD should anchor to the underlying notional of $16.57 per share and to the trader's directional view on MDWD stock.
MDWD cash-secured put setup
The MDWD 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 MDWD near $16.57, the first option leg uses a $16.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MDWD chain at a 126-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 MDWD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $16.00 | $1.93 |
MDWD cash-secured put risk and reward
- Net Premium / Debit
- +$192.50
- Max Profit (per contract)
- $192.50
- Max Loss (per contract)
- -$1,406.50
- Breakeven(s)
- $14.08
- Risk / Reward Ratio
- 0.137
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
MDWD cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on MDWD. 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% | -$1,406.50 |
| $3.67 | -77.8% | -$1,040.24 |
| $7.34 | -55.7% | -$673.98 |
| $11.00 | -33.6% | -$307.72 |
| $14.66 | -11.5% | +$58.55 |
| $18.32 | +10.6% | +$192.50 |
| $21.99 | +32.7% | +$192.50 |
| $25.65 | +54.8% | +$192.50 |
| $29.31 | +76.9% | +$192.50 |
| $32.97 | +99.0% | +$192.50 |
When traders use cash-secured put on MDWD
Cash-secured puts on MDWD earn premium while a trader waits to acquire MDWD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning MDWD.
MDWD thesis for this cash-secured put
The market-implied 1-standard-deviation range for MDWD extends from approximately $14.13 on the downside to $19.01 on the upside. A MDWD cash-secured put lets a trader earn premium while waiting to acquire MDWD 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 MDWD IV rank near 5.44% 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 MDWD at 51.30%. As a Healthcare name, MDWD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MDWD-specific events.
MDWD 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. MDWD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MDWD alongside the broader basket even when MDWD-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on MDWD carry tail risk when realized volatility exceeds the implied move; review historical MDWD earnings reactions and macro stress periods before sizing. Always rebuild the position from current MDWD chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on MDWD?
- A cash-secured put on MDWD is the cash-secured put strategy applied to MDWD (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 MDWD stock trading near $16.57, the strikes shown on this page are snapped to the nearest listed MDWD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MDWD 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 MDWD cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 51.30%), the computed maximum profit is $192.50 per contract and the computed maximum loss is -$1,406.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MDWD cash-secured put?
- The breakeven for the MDWD cash-secured put priced on this page is roughly $14.08 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 MDWD market-implied 1-standard-deviation expected move is approximately 14.71%; 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 MDWD?
- Cash-secured puts on MDWD earn premium while a trader waits to acquire MDWD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning MDWD.
- How does current MDWD implied volatility affect this cash-secured put?
- MDWD ATM IV is at 51.30% with IV rank near 5.44%, 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.