RMD Cash-Secured Put Strategy
RMD (ResMed Inc.), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NYSE.
ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients' device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; U-Sleep, a compliance monitoring solution that enables home medical equipment (HME)to streamline their sleep programs; connectivity module and propeller solutions; and Propeller portal. It offers out-of-hospital software solution, such as Brightree business management software and service solutions to providers of HME, pharmacy, home infusion, orthotics, and prosthetics services; MatrixCare care management and related ancillary solutions to senior living, skilled nursing, life plan communities, home health, home care, and hospice organizations, as well as related accountable care organizations; and HEALTHCAREfirst that offers electronic health record, software, billing and coding services, and analytics for home health and hospice agencies. The company markets its products primarily to sleep clinics, home healthcare dealers, and hospitals through a network of distributors and direct sales force in approximately 140 countries.
RMD (ResMed Inc.) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $29.36B, a trailing P/E of 19.51, a beta of 0.85 versus the broader market, a 52-week range of 198.61-293.81, average daily share volume of 1.1M, a public-listing history dating back to 1995, approximately 10K full-time employees. These structural characteristics shape how RMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.85 places RMD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RMD 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 RMD?
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 RMD snapshot
As of May 15, 2026, spot at $202.32, ATM IV 28.50%, IV rank 21.45%, expected move 8.17%. The cash-secured put on RMD 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 RMD specifically: RMD IV at 28.50% is on the cheap side of its 1-year range, which means a premium-selling RMD cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.17% (roughly $16.53 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 RMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on RMD should anchor to the underlying notional of $202.32 per share and to the trader's directional view on RMD stock.
RMD cash-secured put setup
The RMD 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 RMD near $202.32, the first option leg uses a $190.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RMD 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 RMD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $190.00 | $2.63 |
RMD cash-secured put risk and reward
- Net Premium / Debit
- +$262.50
- Max Profit (per contract)
- $262.50
- Max Loss (per contract)
- -$18,736.50
- Breakeven(s)
- $187.38
- Risk / Reward Ratio
- 0.014
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
RMD cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on RMD. 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 | -100.0% | -$18,736.50 |
| $44.74 | -77.9% | -$14,263.20 |
| $89.48 | -55.8% | -$9,789.91 |
| $134.21 | -33.7% | -$5,316.61 |
| $178.94 | -11.6% | -$843.31 |
| $223.67 | +10.6% | +$262.50 |
| $268.41 | +32.7% | +$262.50 |
| $313.14 | +54.8% | +$262.50 |
| $357.87 | +76.9% | +$262.50 |
| $402.61 | +99.0% | +$262.50 |
When traders use cash-secured put on RMD
Cash-secured puts on RMD earn premium while a trader waits to acquire RMD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RMD.
RMD thesis for this cash-secured put
The market-implied 1-standard-deviation range for RMD extends from approximately $185.79 on the downside to $218.85 on the upside. A RMD cash-secured put lets a trader earn premium while waiting to acquire RMD 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 RMD IV rank near 21.45% 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 RMD at 28.50%. As a Healthcare name, RMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RMD-specific events.
RMD 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. RMD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RMD alongside the broader basket even when RMD-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on RMD carry tail risk when realized volatility exceeds the implied move; review historical RMD earnings reactions and macro stress periods before sizing. Always rebuild the position from current RMD chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on RMD?
- A cash-secured put on RMD is the cash-secured put strategy applied to RMD (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 RMD stock trading near $202.32, the strikes shown on this page are snapped to the nearest listed RMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RMD 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 RMD cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 28.50%), the computed maximum profit is $262.50 per contract and the computed maximum loss is -$18,736.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RMD cash-secured put?
- The breakeven for the RMD cash-secured put priced on this page is roughly $187.38 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 RMD market-implied 1-standard-deviation expected move is approximately 8.17%; 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 RMD?
- Cash-secured puts on RMD earn premium while a trader waits to acquire RMD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RMD.
- How does current RMD implied volatility affect this cash-secured put?
- RMD ATM IV is at 28.50% with IV rank near 21.45%, 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.