RLAY Cash-Secured Put Strategy
RLAY (Relay Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Relay Therapeutics, Inc. operates as a clinical-stage precision medicines company. It engages in transforming the drug discovery process with an initial focus on enhancing small molecule therapeutic discovery in targeted oncology and genetic disease indications. The company's lead product candidates include RLY-4008, an oral small molecule inhibitor of fibroblast growth factor receptor 2 (FGFR2), which is in a first-in-human clinical trial for patients with advanced or metastatic FGFR2-altered solid tumors; RLY-2608, a lead mutant-PI3Ka inhibitor program that targets phosphoinostide 3 kinase alpha; and RLY-1971, an oral small molecule inhibitor of protein tyrosine phosphatase Src homology region 2 domain-containing phosphatase-2 that is in Phase 1 trial in patients with advanced solid tumors. It has collaboration and license agreements with D. E. Shaw Research, LLC to research certain biological targets through the use of D.
RLAY (Relay Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.53B, a beta of 1.75 versus the broader market, a 52-week range of 2.67-17.32, average daily share volume of 3.0M, a public-listing history dating back to 2020, approximately 259 full-time employees. These structural characteristics shape how RLAY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.75 indicates RLAY 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 RLAY?
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 RLAY snapshot
As of May 15, 2026, spot at $12.54, ATM IV 113.30%, IV rank 18.35%, expected move 32.48%. The cash-secured put on RLAY 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 RLAY specifically: RLAY IV at 113.30% is on the cheap side of its 1-year range, which means a premium-selling RLAY cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 32.48% (roughly $4.07 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 RLAY expiries trade a higher absolute premium for lower per-day decay. Position sizing on RLAY should anchor to the underlying notional of $12.54 per share and to the trader's directional view on RLAY stock.
RLAY cash-secured put setup
The RLAY 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 RLAY near $12.54, the first option leg uses a $12.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RLAY 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 RLAY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $12.00 | $1.00 |
RLAY cash-secured put risk and reward
- Net Premium / Debit
- +$100.00
- Max Profit (per contract)
- $100.00
- Max Loss (per contract)
- -$1,099.00
- Breakeven(s)
- $11.00
- Risk / Reward Ratio
- 0.091
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
RLAY cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on RLAY. 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% | -$1,099.00 |
| $2.78 | -77.8% | -$821.84 |
| $5.55 | -55.7% | -$544.69 |
| $8.32 | -33.6% | -$267.53 |
| $11.10 | -11.5% | +$9.62 |
| $13.87 | +10.6% | +$100.00 |
| $16.64 | +32.7% | +$100.00 |
| $19.41 | +54.8% | +$100.00 |
| $22.18 | +76.9% | +$100.00 |
| $24.95 | +99.0% | +$100.00 |
When traders use cash-secured put on RLAY
Cash-secured puts on RLAY earn premium while a trader waits to acquire RLAY stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RLAY.
RLAY thesis for this cash-secured put
The market-implied 1-standard-deviation range for RLAY extends from approximately $8.47 on the downside to $16.61 on the upside. A RLAY cash-secured put lets a trader earn premium while waiting to acquire RLAY 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 RLAY IV rank near 18.35% 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 RLAY at 113.30%. As a Healthcare name, RLAY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RLAY-specific events.
RLAY 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. RLAY positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RLAY alongside the broader basket even when RLAY-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on RLAY carry tail risk when realized volatility exceeds the implied move; review historical RLAY earnings reactions and macro stress periods before sizing. Always rebuild the position from current RLAY chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on RLAY?
- A cash-secured put on RLAY is the cash-secured put strategy applied to RLAY (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 RLAY stock trading near $12.54, the strikes shown on this page are snapped to the nearest listed RLAY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RLAY 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 RLAY cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 113.30%), the computed maximum profit is $100.00 per contract and the computed maximum loss is -$1,099.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RLAY cash-secured put?
- The breakeven for the RLAY cash-secured put priced on this page is roughly $11.00 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 RLAY market-implied 1-standard-deviation expected move is approximately 32.48%; 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 RLAY?
- Cash-secured puts on RLAY earn premium while a trader waits to acquire RLAY stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RLAY.
- How does current RLAY implied volatility affect this cash-secured put?
- RLAY ATM IV is at 113.30% with IV rank near 18.35%, 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.