PACB Cash-Secured Put Strategy

PACB (Pacific Biosciences of California, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.

Pacific Biosciences of California, Inc. (PACB) specializes in pioneering and manufacturing advanced genetic sequencing platforms, empowering researchers and institutions to unravel intricate genetic challenges. At the heart of its offerings are the proprietary PacBio Sequencing Systems, designed for executing, monitoring, and interpreting biochemical sequencing reactions. Complementing these instruments are essential consumable products, such as their unique single molecule real-time (SMRT) cells. Furthermore, the company supplies a comprehensive suite of workflow-specific reagent kits. These include template preparation kits, which utilize molecular biology reagents (like ligase, buffers, and exonucleases) to convert DNA into SMRTbell double-stranded DNA libraries. Binding kits, featuring modified DNA polymerase, facilitate the crucial attachment of SMRTbell libraries to the polymerase in readiness for sequencing.

PACB (Pacific Biosciences of California, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $357.2M, a beta of 2.32 versus the broader market, a 52-week range of 1.07-2.73, average daily share volume of 6.4M, a public-listing history dating back to 2010, approximately 485 full-time employees. These structural characteristics shape how PACB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.32 indicates PACB 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 PACB?

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.

PACB snapshot

As of August 14, 2026, spot at $1.15, ATM IV 267.30%, IV rank 64.72%, expected move 76.63%. The cash-secured put on PACB 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 PACB specifically: PACB IV at 267.30% is mid-range versus its 1-year history, so the credit collected on a PACB cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 76.63% (roughly $0.88 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 PACB expiries trade a higher absolute premium for lower per-day decay. Position sizing on PACB should anchor to the underlying notional of $1.15 per share and to the trader's directional view on PACB stock.

PACB cash-secured put setup

The PACB 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 PACB at $1.15 on that close, the first option leg uses a $1.09 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PACB 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 PACB shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$1.09N/A

PACB 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.

PACB cash-secured put payoff curve

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

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

PACB thesis for this cash-secured put

The market-implied 1-standard-deviation range for PACB extends from approximately $0.27 on the downside to $2.03 on the upside. A PACB cash-secured put lets a trader earn premium while waiting to acquire PACB 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 PACB IV rank near 64.72% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on PACB should anchor more to the directional view and the expected-move geometry. As a Healthcare name, PACB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PACB-specific events.

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

Frequently asked questions

What is a cash-secured put on PACB?
A cash-secured put on PACB is the cash-secured put strategy applied to PACB (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 PACB stock at $1.15 on the most recent close, the strikes shown on this page are snapped to the nearest listed PACB chain strike and the premiums come straight from that session's bid/ask midpoint.
How are PACB 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 PACB cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 267.30%), 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 PACB cash-secured put?
The breakeven for the PACB 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 PACB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 76.63%; 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 PACB?
Cash-secured puts on PACB earn premium while a trader waits to acquire PACB stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PACB.
How does current PACB implied volatility affect this cash-secured put?
PACB ATM IV is at 267.30% with IV rank near 64.72%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

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