RLMD Cash-Secured Put Strategy
RLMD (Relmada Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Relmada Therapeutics, Inc., a clinical-stage biotechnology company, focuses on developing various products for the treatment of central nervous system (CNS) diseases and other disorders. Its lead product candidate is Esmethadone (d-methadone, dextromethadone, and REL-1017), a new chemical entity and N-methyl-D-aspartate receptor antagonist that is in Phase 3 clinical trials for the adjunctive or monotherapy treatment of major depressive disorder in adults. The company was founded in 2004 and is headquartered in Coral Gables, Florida.
RLMD (Relmada Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $549.3M, a beta of 0.43 versus the broader market, a 52-week range of 0.382-8, average daily share volume of 1.9M, a public-listing history dating back to 2014, approximately 17 full-time employees. These structural characteristics shape how RLMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.43 indicates RLMD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a cash-secured put on RLMD?
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 RLMD snapshot
As of May 15, 2026, spot at $6.97, ATM IV 57.80%, IV rank 1.19%, expected move 16.57%. The cash-secured put on RLMD 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 RLMD specifically: RLMD IV at 57.80% is on the cheap side of its 1-year range, which means a premium-selling RLMD cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 16.57% (roughly $1.15 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 RLMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on RLMD should anchor to the underlying notional of $6.97 per share and to the trader's directional view on RLMD stock.
RLMD cash-secured put setup
The RLMD 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 RLMD near $6.97, the first option leg uses a $6.62 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RLMD 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 RLMD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $6.62 | N/A |
RLMD 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.
RLMD cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on RLMD. 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 RLMD
Cash-secured puts on RLMD earn premium while a trader waits to acquire RLMD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RLMD.
RLMD thesis for this cash-secured put
The market-implied 1-standard-deviation range for RLMD extends from approximately $5.82 on the downside to $8.12 on the upside. A RLMD cash-secured put lets a trader earn premium while waiting to acquire RLMD 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 RLMD IV rank near 1.19% 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 RLMD at 57.80%. As a Healthcare name, RLMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RLMD-specific events.
RLMD 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. RLMD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RLMD alongside the broader basket even when RLMD-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on RLMD carry tail risk when realized volatility exceeds the implied move; review historical RLMD earnings reactions and macro stress periods before sizing. Always rebuild the position from current RLMD chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on RLMD?
- A cash-secured put on RLMD is the cash-secured put strategy applied to RLMD (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 RLMD stock trading near $6.97, the strikes shown on this page are snapped to the nearest listed RLMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RLMD 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 RLMD cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 57.80%), 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 RLMD cash-secured put?
- The breakeven for the RLMD 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 RLMD market-implied 1-standard-deviation expected move is approximately 16.57%; 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 RLMD?
- Cash-secured puts on RLMD earn premium while a trader waits to acquire RLMD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RLMD.
- How does current RLMD implied volatility affect this cash-secured put?
- RLMD ATM IV is at 57.80% with IV rank near 1.19%, 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.