NEO Cash-Secured Put Strategy
NEO (NeoGenomics, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
NeoGenomics, Inc. specializes in providing cancer-focused diagnostic and testing services through an extensive network of laboratories located across the United States, Europe, and Asia. The company operates through two distinct divisions: Clinical Services and Pharma Services. Its comprehensive offerings cater to a diverse clientele, including hospitals, reference laboratories, pathologists, oncologists, clinicians, pharmaceutical companies, and researchers. NeoGenomics' advanced testing capabilities encompass cytogenetics, which examines normal and abnormal chromosomes in relation to disease; fluorescence in-situ hybridization (FISH) for detecting and pinpointing specific DNA sequences and genes on chromosomes; and flow cytometry, used to measure cell population characteristics. Additionally, the company provides immunohistochemistry and digital imaging services, enabling the localization of cellular proteins in tissue sections, visualization of scanned slides, and quantitative analysis. Molecular testing, focusing on DNA/RNA analysis and gene structure/function, is also a key offering, alongside morphologic analysis where pathologists microscopically diagnose cells.
NEO (NeoGenomics, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $369.0M, a beta of 1.81 versus the broader market, a 52-week range of 4.72-14.23, average daily share volume of 2.5M, a public-listing history dating back to 2004, approximately 2K full-time employees. These structural characteristics shape how NEO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.81 indicates NEO 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 NEO?
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 NEO snapshot
As of June 29, 2026, spot at $14.17, ATM IV 62.00%, IV rank 9.86%, expected move 17.77%. The cash-secured put on NEO 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 NEO specifically: NEO IV at 62.00% is on the cheap side of its 1-year range, which means a premium-selling NEO cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 17.77% (roughly $2.52 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 NEO expiries trade a higher absolute premium for lower per-day decay. Position sizing on NEO should anchor to the underlying notional of $14.17 per share and to the trader's directional view on NEO stock.
NEO cash-secured put setup
The NEO 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 NEO near $14.17, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NEO 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 NEO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $13.00 | $0.34 |
NEO cash-secured put risk and reward
- Net Premium / Debit
- +$34.00
- Max Profit (per contract)
- $34.00
- Max Loss (per contract)
- -$1,265.00
- Breakeven(s)
- $12.66
- Risk / Reward Ratio
- 0.027
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
NEO cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on NEO. 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% | -$1,265.00 |
| $3.14 | -77.8% | -$951.80 |
| $6.27 | -55.7% | -$638.61 |
| $9.41 | -33.6% | -$325.41 |
| $12.54 | -11.5% | -$12.22 |
| $15.67 | +10.6% | +$34.00 |
| $18.80 | +32.7% | +$34.00 |
| $21.93 | +54.8% | +$34.00 |
| $25.07 | +76.9% | +$34.00 |
| $28.20 | +99.0% | +$34.00 |
When traders use cash-secured put on NEO
Cash-secured puts on NEO earn premium while a trader waits to acquire NEO stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NEO.
NEO thesis for this cash-secured put
The market-implied 1-standard-deviation range for NEO extends from approximately $11.65 on the downside to $16.69 on the upside. A NEO cash-secured put lets a trader earn premium while waiting to acquire NEO 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 NEO IV rank near 9.86% 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 NEO at 62.00%. As a Healthcare name, NEO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NEO-specific events.
NEO 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. NEO positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NEO alongside the broader basket even when NEO-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on NEO carry tail risk when realized volatility exceeds the implied move; review historical NEO earnings reactions and macro stress periods before sizing. Always rebuild the position from current NEO chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on NEO?
- A cash-secured put on NEO is the cash-secured put strategy applied to NEO (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 NEO stock trading near $14.17, the strikes shown on this page are snapped to the nearest listed NEO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NEO 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 NEO cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 62.00%), the computed maximum profit is $34.00 per contract and the computed maximum loss is -$1,265.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NEO cash-secured put?
- The breakeven for the NEO cash-secured put priced on this page is roughly $12.66 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 NEO market-implied 1-standard-deviation expected move is approximately 17.77%; 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 NEO?
- Cash-secured puts on NEO earn premium while a trader waits to acquire NEO stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NEO.
- How does current NEO implied volatility affect this cash-secured put?
- NEO ATM IV is at 62.00% with IV rank near 9.86%, 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.