OFIX Cash-Secured Put Strategy
OFIX (Orthofix Medical Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Orthofix Medical Inc., founded in 1980 and headquartered in Lewisville, Texas, operates as a global medical technology company focusing on devices and biologics. Its reach extends across the United States, several European nations including Italy, Germany, France, and the United Kingdom, as well as Brazil and other international markets. The company's operations are divided into two main segments: Global Spine and Global Orthopedics. Within the Global Spine division, Orthofix is responsible for the development, production, and distribution of bone growth stimulators. These devices are designed to facilitate bone fusion and serve as a therapeutic intervention for fractures located outside the spine and in the limbs. This segment also creates and commercializes a range of motion preservation and fixation implant products utilized in spinal surgical procedures.
OFIX (Orthofix Medical Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $420.4M, a beta of 0.67 versus the broader market, a 52-week range of 8.85-16.99, average daily share volume of 390K, a public-listing history dating back to 1992, approximately 2K full-time employees. These structural characteristics shape how OFIX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.67 indicates OFIX 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 OFIX?
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.
OFIX snapshot
As of August 14, 2026, spot at $10.41, ATM IV 31.70%, IV rank 2.27%, expected move 9.09%. The cash-secured put on OFIX below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this cash-secured put structure on OFIX specifically: OFIX IV at 31.70% is on the cheap side of its 1-year range, which means a premium-selling OFIX cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.09% (roughly $0.95 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OFIX expiries trade a higher absolute premium for lower per-day decay. Position sizing on OFIX should anchor to the underlying notional of $10.41 per share and to the trader's directional view on OFIX stock.
OFIX cash-secured put setup
The OFIX 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 OFIX at $10.41 on that close, the first option leg uses a $9.89 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OFIX chain at a 35-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 OFIX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $9.89 | N/A |
OFIX 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.
OFIX cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on OFIX. 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 OFIX
Cash-secured puts on OFIX earn premium while a trader waits to acquire OFIX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning OFIX.
OFIX thesis for this cash-secured put
The market-implied 1-standard-deviation range for OFIX extends from approximately $9.46 on the downside to $11.36 on the upside. A OFIX cash-secured put lets a trader earn premium while waiting to acquire OFIX 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 OFIX IV rank near 2.27% 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 OFIX at 31.70%. As a Healthcare name, OFIX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OFIX-specific events.
OFIX 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. OFIX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OFIX alongside the broader basket even when OFIX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on OFIX carry tail risk when realized volatility exceeds the implied move; review historical OFIX earnings reactions and macro stress periods before sizing. Always rebuild the position from current OFIX chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on OFIX?
- A cash-secured put on OFIX is the cash-secured put strategy applied to OFIX (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 OFIX stock at $10.41 on the most recent close, the strikes shown on this page are snapped to the nearest listed OFIX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are OFIX 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 OFIX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 31.70%), 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 OFIX cash-secured put?
- The breakeven for the OFIX cash-secured put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The OFIX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.09%; 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 OFIX?
- Cash-secured puts on OFIX earn premium while a trader waits to acquire OFIX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning OFIX.
- How does current OFIX implied volatility affect this cash-secured put?
- OFIX ATM IV is at 31.70% with IV rank near 2.27%, 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.