OLMA Long Put Strategy
OLMA (Olema Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Olema Pharmaceuticals, Inc., a biopharmaceutical enterprise in the clinical development stage, is dedicated to discovering, advancing, and commercializing therapeutic solutions for women's oncology. Headquartered in San Francisco, California, the company was established in 2006 and rebranded from CombiThera, Inc. in March 2009. Its most promising investigational compound, OP-1250, an estrogen receptor (ER) antagonist and selective ER degrader, is presently undergoing Phase 1/2 clinical evaluations. This drug candidate is being assessed for its efficacy in managing recurrent, locally advanced, or metastatic breast cancer that expresses estrogen receptors but is negative for human epidermal growth factor receptor 2.
OLMA (Olema Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $911.9M, a beta of 2.01 versus the broader market, a 52-week range of 5.15-36.259, average daily share volume of 1.3M, a public-listing history dating back to 2020, approximately 137 full-time employees. These structural characteristics shape how OLMA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.01 indicates OLMA 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 long put on OLMA?
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.
OLMA snapshot
As of August 14, 2026, spot at $10.66, ATM IV 77.40%, IV rank 12.99%, expected move 22.19%. The long put on OLMA below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.
Why this long put structure on OLMA specifically: OLMA IV at 77.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a OLMA long put, with a market-implied 1-standard-deviation move of approximately 22.19% (roughly $2.37 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OLMA expiries trade a higher absolute premium for lower per-day decay. Position sizing on OLMA should anchor to the underlying notional of $10.66 per share and to the trader's directional view on OLMA stock.
OLMA long put setup
The OLMA long put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With OLMA at $10.66 on that close, the first option leg uses a $11.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OLMA chain at a 7-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 OLMA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $11.00 | $1.77 |
OLMA long put risk and reward
- Net Premium / Debit
- -$177.00
- Max Profit (per contract)
- $922.00
- Max Loss (per contract)
- -$177.00
- Breakeven(s)
- $9.23
- Risk / Reward Ratio
- 5.209
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
OLMA long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on OLMA. 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% | +$922.00 |
| $2.37 | -77.8% | +$686.41 |
| $4.72 | -55.7% | +$450.82 |
| $7.08 | -33.6% | +$215.24 |
| $9.43 | -11.5% | -$20.35 |
| $11.79 | +10.6% | -$177.00 |
| $14.15 | +32.7% | -$177.00 |
| $16.50 | +54.8% | -$177.00 |
| $18.86 | +76.9% | -$177.00 |
| $21.21 | +99.0% | -$177.00 |
When traders use long put on OLMA
Long puts on OLMA hedge an existing long OLMA stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying OLMA exposure being hedged.
OLMA thesis for this long put
The market-implied 1-standard-deviation range for OLMA extends from approximately $8.29 on the downside to $13.03 on the upside. A OLMA long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long OLMA position with one put per 100 shares held. Current OLMA IV rank near 12.99% 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 OLMA at 77.40%. As a Healthcare name, OLMA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OLMA-specific events.
OLMA 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. OLMA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OLMA alongside the broader basket even when OLMA-specific fundamentals are unchanged. Long-premium structures like a long put on OLMA 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 OLMA chain quotes before placing a trade.
Frequently asked questions
- What is a long put on OLMA?
- A long put on OLMA is the long put strategy applied to OLMA (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 OLMA stock at $10.66 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed OLMA chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are OLMA 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 OLMA long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 77.40%), the computed maximum profit is $922.00 per contract and the computed maximum loss is -$177.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OLMA long put?
- The breakeven for the OLMA long put priced on this page is roughly $9.23 at expiration, derived from the August 14, 2026 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 OLMA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.19%; 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 OLMA?
- Long puts on OLMA hedge an existing long OLMA stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying OLMA exposure being hedged.
- How does current OLMA implied volatility affect this long put?
- OLMA ATM IV is at 77.40% with IV rank near 12.99%, 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.