RVMD Cash-Secured Put Strategy
RVMD (Revolution Medicines, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Revolution Medicines, Inc., a clinical-stage precision oncology company, focuses on developing therapies to inhibit frontier targets in RAS-addicted cancers. The company is developing RMC-4630, an inhibitor of SHP2, which is in Phase 1/2 clinical trial for the treatment of solid tumors, such as gynecologic and colorectal cancer tumors. It also develops RMC-5845, a selective inhibitor of SOS1, a protein that converts RAS (OFF) to RAS (ON) in cells; and RMC-5552, a hyperactivated selective inhibitor of mTORC1 signaling in tumors. In addition, the company is developing RMC-6291, a mutant-selective inhibitor of KRASG12C(ON) and NRASG12C(ON); and RMC-6236, a RAS-selective inhibitor of multiple RAS(ON) variants. Further, it develops RAS(ON) Inhibitors targeting KRASG13C(ON) and KRASG12D(ON). The company has a collaboration agreement with Sanofi for the research and development of SHP2 inhibitors, including RMC-4630.
RVMD (Revolution Medicines, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $31.88B, a beta of 1.41 versus the broader market, a 52-week range of 34-155.7, average daily share volume of 3.0M, a public-listing history dating back to 2020, approximately 616 full-time employees. These structural characteristics shape how RVMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.41 indicates RVMD 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 RVMD?
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 RVMD snapshot
As of May 15, 2026, spot at $145.12, ATM IV 63.90%, IV rank 31.69%, expected move 18.32%. The cash-secured put on RVMD 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 RVMD specifically: RVMD IV at 63.90% is mid-range versus its 1-year history, so the credit collected on a RVMD cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 18.32% (roughly $26.59 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 RVMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on RVMD should anchor to the underlying notional of $145.12 per share and to the trader's directional view on RVMD stock.
RVMD cash-secured put setup
The RVMD 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 RVMD near $145.12, the first option leg uses a $140.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RVMD 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 RVMD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $140.00 | $8.65 |
RVMD cash-secured put risk and reward
- Net Premium / Debit
- +$865.00
- Max Profit (per contract)
- $865.00
- Max Loss (per contract)
- -$13,134.00
- Breakeven(s)
- $131.35
- Risk / Reward Ratio
- 0.066
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
RVMD cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on RVMD. 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% | -$13,134.00 |
| $32.10 | -77.9% | -$9,925.43 |
| $64.18 | -55.8% | -$6,716.85 |
| $96.27 | -33.7% | -$3,508.28 |
| $128.35 | -11.6% | -$299.71 |
| $160.44 | +10.6% | +$865.00 |
| $192.52 | +32.7% | +$865.00 |
| $224.61 | +54.8% | +$865.00 |
| $256.70 | +76.9% | +$865.00 |
| $288.78 | +99.0% | +$865.00 |
When traders use cash-secured put on RVMD
Cash-secured puts on RVMD earn premium while a trader waits to acquire RVMD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RVMD.
RVMD thesis for this cash-secured put
The market-implied 1-standard-deviation range for RVMD extends from approximately $118.53 on the downside to $171.71 on the upside. A RVMD cash-secured put lets a trader earn premium while waiting to acquire RVMD 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 RVMD IV rank near 31.69% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on RVMD should anchor more to the directional view and the expected-move geometry. As a Healthcare name, RVMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RVMD-specific events.
RVMD 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. RVMD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RVMD alongside the broader basket even when RVMD-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on RVMD carry tail risk when realized volatility exceeds the implied move; review historical RVMD earnings reactions and macro stress periods before sizing. Always rebuild the position from current RVMD chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on RVMD?
- A cash-secured put on RVMD is the cash-secured put strategy applied to RVMD (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 RVMD stock trading near $145.12, the strikes shown on this page are snapped to the nearest listed RVMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RVMD 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 RVMD cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 63.90%), the computed maximum profit is $865.00 per contract and the computed maximum loss is -$13,134.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RVMD cash-secured put?
- The breakeven for the RVMD cash-secured put priced on this page is roughly $131.35 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 RVMD market-implied 1-standard-deviation expected move is approximately 18.32%; 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 RVMD?
- Cash-secured puts on RVMD earn premium while a trader waits to acquire RVMD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RVMD.
- How does current RVMD implied volatility affect this cash-secured put?
- RVMD ATM IV is at 63.90% with IV rank near 31.69%, 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.