NEON Cash-Secured Put Strategy

NEON (Neonode Inc.), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NASDAQ.

Neonode Inc., together with its subsidiaries, develops optical sensing solutions for contactless touch, touch, and gesture sensing in the United States, Japan, South Korea, China, and internationally. It also offers software solutions for scene analysis using advanced machine learning algorithms to detect and track persons and objects in video streams for cameras and other types of imagers. In addition, the company licenses its technology to original equipment manufacturers (OEMs) and Tier 1 suppliers. Further, it provides embedded sensors modules to OEMs, original design manufacturers, and systems integrators; and engineering consulting services. Additionally, the company sells Neonode branded sensor products, such as AirBar products through distributors. It serves office equipment, automotive, industrial automation, medical, military, and avionics markets.

NEON (Neonode Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $27.5M, a trailing P/E of 3.29, a beta of 1.00 versus the broader market, a 52-week range of 1.27-29.9, average daily share volume of 105K, a public-listing history dating back to 1989, approximately 40 full-time employees. These structural characteristics shape how NEON stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.00 places NEON roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 3.29 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 NEON?

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 NEON snapshot

As of May 15, 2026, spot at $1.65, ATM IV 20.90%, IV rank 0.17%, expected move 5.99%. The cash-secured put on NEON 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 cash-secured put structure on NEON specifically: NEON IV at 20.90% is on the cheap side of its 1-year range, which means a premium-selling NEON cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.99% (roughly $0.10 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 NEON expiries trade a higher absolute premium for lower per-day decay. Position sizing on NEON should anchor to the underlying notional of $1.65 per share and to the trader's directional view on NEON stock.

NEON cash-secured put setup

The NEON 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 NEON near $1.65, the first option leg uses a $1.57 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NEON 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 NEON shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$1.57N/A

NEON 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.

NEON cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on NEON. 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 NEON

Cash-secured puts on NEON earn premium while a trader waits to acquire NEON stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NEON.

NEON thesis for this cash-secured put

The market-implied 1-standard-deviation range for NEON extends from approximately $1.55 on the downside to $1.75 on the upside. A NEON cash-secured put lets a trader earn premium while waiting to acquire NEON 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 NEON IV rank near 0.17% 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 NEON at 20.90%. As a Technology name, NEON options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NEON-specific events.

NEON 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. NEON positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NEON alongside the broader basket even when NEON-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on NEON carry tail risk when realized volatility exceeds the implied move; review historical NEON earnings reactions and macro stress periods before sizing. Always rebuild the position from current NEON chain quotes before placing a trade.

Frequently asked questions

What is a cash-secured put on NEON?
A cash-secured put on NEON is the cash-secured put strategy applied to NEON (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 NEON stock trading near $1.65, the strikes shown on this page are snapped to the nearest listed NEON chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NEON 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 NEON cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 20.90%), 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 NEON cash-secured put?
The breakeven for the NEON 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 NEON market-implied 1-standard-deviation expected move is approximately 5.99%; 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 NEON?
Cash-secured puts on NEON earn premium while a trader waits to acquire NEON stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NEON.
How does current NEON implied volatility affect this cash-secured put?
NEON ATM IV is at 20.90% with IV rank near 0.17%, 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.

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