PYPD Cash-Secured Put Strategy
PYPD (PolyPid Ltd.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
PolyPid Ltd., a late-stage biopharma company, develops, manufactures, and commercializes products based on polymer-lipid encapsulation matrix (PLEX) platform to address unmet medical needs. Its lead product candidate is D-PLEX100, which is in Phase III clinical trial for the prevention of sternal (bone) surgical site infections (SSIs), as well as for the prevention of abdominal (soft tissue) SSIs. PolyPid Ltd. was incorporated in 2008 and is headquartered in Petah Tikva, Israel.
PYPD (PolyPid Ltd.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $43.0M, a beta of 1.41 versus the broader market, a 52-week range of 2.44-5.12, average daily share volume of 51K, a public-listing history dating back to 2020, approximately 57 full-time employees. These structural characteristics shape how PYPD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.41 indicates PYPD 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 PYPD?
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 PYPD snapshot
As of May 15, 2026, spot at $4.50, ATM IV 480.60%, IV rank 97.15%, expected move 137.78%. The cash-secured put on PYPD 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 PYPD specifically: PYPD IV at 480.60% is rich versus its 1-year range, which favors premium-selling structures like a PYPD cash-secured put, with a market-implied 1-standard-deviation move of approximately 137.78% (roughly $6.20 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 PYPD expiries trade a higher absolute premium for lower per-day decay. Position sizing on PYPD should anchor to the underlying notional of $4.50 per share and to the trader's directional view on PYPD stock.
PYPD cash-secured put setup
The PYPD 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 PYPD near $4.50, the first option leg uses a $4.27 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PYPD 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 PYPD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $4.27 | N/A |
PYPD 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.
PYPD cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on PYPD. 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 PYPD
Cash-secured puts on PYPD earn premium while a trader waits to acquire PYPD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PYPD.
PYPD thesis for this cash-secured put
The market-implied 1-standard-deviation range for PYPD extends from approximately $-1.70 on the downside to $10.70 on the upside. A PYPD cash-secured put lets a trader earn premium while waiting to acquire PYPD 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 PYPD IV rank near 97.15% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on PYPD at 480.60%. As a Healthcare name, PYPD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PYPD-specific events.
PYPD 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. PYPD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PYPD alongside the broader basket even when PYPD-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on PYPD carry tail risk when realized volatility exceeds the implied move; review historical PYPD earnings reactions and macro stress periods before sizing. Always rebuild the position from current PYPD chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on PYPD?
- A cash-secured put on PYPD is the cash-secured put strategy applied to PYPD (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 PYPD stock trading near $4.50, the strikes shown on this page are snapped to the nearest listed PYPD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PYPD 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 PYPD cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 480.60%), 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 PYPD cash-secured put?
- The breakeven for the PYPD 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 PYPD market-implied 1-standard-deviation expected move is approximately 137.78%; 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 PYPD?
- Cash-secured puts on PYPD earn premium while a trader waits to acquire PYPD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PYPD.
- How does current PYPD implied volatility affect this cash-secured put?
- PYPD ATM IV is at 480.60% with IV rank near 97.15%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.