ORMP Cash-Secured Put Strategy
ORMP (Oramed Pharmaceuticals Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Oramed Pharmaceuticals Inc. engages in the research and development of pharmaceutical solutions for the treatment of diabetes and for the use of orally ingestible capsules or pills for delivery of polypeptides. Its proprietary flagship product is the ORMD-0801, an orally ingestible insulin capsule, which completed phase II clinical trials for the treatment of individuals with diabetes. It is also developing ORMD-0901, an oral glucagon-like peptide-1 capsule that has completed phase I clinical trials for the treatment of type 2 diabetes; and a weight loss treatment in the form of an oral leptin capsule. The company was formerly known as Integrated Security Technologies, Inc. and changed its name to Oramed Pharmaceuticals Inc. in April 2006. Oramed Pharmaceuticals Inc. was founded in 2002 and is based in New York, New York.
ORMP (Oramed Pharmaceuticals Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $184.4M, a trailing P/E of 2.51, a beta of 1.26 versus the broader market, a 52-week range of 1.98-5.01, average daily share volume of 147K, a public-listing history dating back to 2007, approximately 13 full-time employees. These structural characteristics shape how ORMP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.26 places ORMP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 2.51 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. ORMP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a cash-secured put on ORMP?
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 ORMP snapshot
As of May 15, 2026, spot at $4.64, ATM IV 54.20%, IV rank 7.72%, expected move 15.54%. The cash-secured put on ORMP 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 ORMP specifically: ORMP IV at 54.20% is on the cheap side of its 1-year range, which means a premium-selling ORMP cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 15.54% (roughly $0.72 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 ORMP expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORMP should anchor to the underlying notional of $4.64 per share and to the trader's directional view on ORMP stock.
ORMP cash-secured put setup
The ORMP 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 ORMP near $4.64, the first option leg uses a $4.41 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ORMP 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 ORMP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $4.41 | N/A |
ORMP 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.
ORMP cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ORMP. 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 ORMP
Cash-secured puts on ORMP earn premium while a trader waits to acquire ORMP stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ORMP.
ORMP thesis for this cash-secured put
The market-implied 1-standard-deviation range for ORMP extends from approximately $3.92 on the downside to $5.36 on the upside. A ORMP cash-secured put lets a trader earn premium while waiting to acquire ORMP 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 ORMP IV rank near 7.72% 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 ORMP at 54.20%. As a Healthcare name, ORMP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ORMP-specific events.
ORMP 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. ORMP positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ORMP alongside the broader basket even when ORMP-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ORMP carry tail risk when realized volatility exceeds the implied move; review historical ORMP earnings reactions and macro stress periods before sizing. Always rebuild the position from current ORMP chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on ORMP?
- A cash-secured put on ORMP is the cash-secured put strategy applied to ORMP (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 ORMP stock trading near $4.64, the strikes shown on this page are snapped to the nearest listed ORMP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ORMP 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 ORMP cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 54.20%), 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 ORMP cash-secured put?
- The breakeven for the ORMP 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 ORMP market-implied 1-standard-deviation expected move is approximately 15.54%; 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 ORMP?
- Cash-secured puts on ORMP earn premium while a trader waits to acquire ORMP stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ORMP.
- How does current ORMP implied volatility affect this cash-secured put?
- ORMP ATM IV is at 54.20% with IV rank near 7.72%, 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.