ROIV Cash-Secured Put Strategy
ROIV (Roivant Sciences Ltd.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Roivant Sciences Ltd., a biopharmaceutical and healthcare technology company that researches and develops medicines. The company develops product candidates for the treatment of various therapeutics, including solid tumors, sickle cell diseases, hypophosphatasia, oncologic malignancies, psoriasis, atopic dermatitis, vitiligo, hyperhidrosis, acne, myasthenia gravis, warm autoimmune hemolytic anemia, thyroid eye diseases, sarcoidosis, and staph aureus bacteremia. The company was founded in 2014 and is based in London, the United Kingdom.
ROIV (Roivant Sciences Ltd.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $20.91B, a beta of 1.14 versus the broader market, a 52-week range of 10.58-30.33, average daily share volume of 5.4M, a public-listing history dating back to 2020, approximately 908 full-time employees. These structural characteristics shape how ROIV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.14 places ROIV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a cash-secured put on ROIV?
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 ROIV snapshot
As of May 15, 2026, spot at $29.45, ATM IV 60.10%, IV rank 60.65%, expected move 17.23%. The cash-secured put on ROIV 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 ROIV specifically: ROIV IV at 60.10% is mid-range versus its 1-year history, so the credit collected on a ROIV cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 17.23% (roughly $5.07 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 ROIV expiries trade a higher absolute premium for lower per-day decay. Position sizing on ROIV should anchor to the underlying notional of $29.45 per share and to the trader's directional view on ROIV stock.
ROIV cash-secured put setup
The ROIV 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 ROIV near $29.45, the first option leg uses a $28.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ROIV 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 ROIV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $28.00 | $1.45 |
ROIV cash-secured put risk and reward
- Net Premium / Debit
- +$145.00
- Max Profit (per contract)
- $145.00
- Max Loss (per contract)
- -$2,654.00
- Breakeven(s)
- $26.55
- Risk / Reward Ratio
- 0.055
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
ROIV cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ROIV. 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% | -$2,654.00 |
| $6.52 | -77.9% | -$2,002.95 |
| $13.03 | -55.8% | -$1,351.91 |
| $19.54 | -33.6% | -$700.86 |
| $26.05 | -11.5% | -$49.82 |
| $32.56 | +10.6% | +$145.00 |
| $39.07 | +32.7% | +$145.00 |
| $45.58 | +54.8% | +$145.00 |
| $52.09 | +76.9% | +$145.00 |
| $58.60 | +99.0% | +$145.00 |
When traders use cash-secured put on ROIV
Cash-secured puts on ROIV earn premium while a trader waits to acquire ROIV stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ROIV.
ROIV thesis for this cash-secured put
The market-implied 1-standard-deviation range for ROIV extends from approximately $24.38 on the downside to $34.52 on the upside. A ROIV cash-secured put lets a trader earn premium while waiting to acquire ROIV 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 ROIV IV rank near 60.65% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on ROIV should anchor more to the directional view and the expected-move geometry. As a Healthcare name, ROIV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ROIV-specific events.
ROIV 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. ROIV positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ROIV alongside the broader basket even when ROIV-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ROIV carry tail risk when realized volatility exceeds the implied move; review historical ROIV earnings reactions and macro stress periods before sizing. Always rebuild the position from current ROIV chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on ROIV?
- A cash-secured put on ROIV is the cash-secured put strategy applied to ROIV (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 ROIV stock trading near $29.45, the strikes shown on this page are snapped to the nearest listed ROIV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ROIV 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 ROIV cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 60.10%), the computed maximum profit is $145.00 per contract and the computed maximum loss is -$2,654.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ROIV cash-secured put?
- The breakeven for the ROIV cash-secured put priced on this page is roughly $26.55 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 ROIV market-implied 1-standard-deviation expected move is approximately 17.23%; 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 ROIV?
- Cash-secured puts on ROIV earn premium while a trader waits to acquire ROIV stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ROIV.
- How does current ROIV implied volatility affect this cash-secured put?
- ROIV ATM IV is at 60.10% with IV rank near 60.65%, 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.