SKYE Cash-Secured Put Strategy

SKYE (Skye Bioscience, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Skye Bioscience, Inc., a biopharmaceutical company, discovers, develops, and commercializes cannabinoid-based molecules for the treatment of infectious diseases. The company's lead product candidate is SBI-100, which is in Phase I trials for the treatment of glaucoma and ocular hypertension. It is also developing SBI-200 that is in preclinical trials to treat and manage various eye diseases, including uveitis, dry eye syndrome, macular degeneration and diabetic retinopathy. The company was formerly known as Emerald Bioscience, Inc. and changed its name to Skye Bioscience, Inc. in January 2021. Skye Bioscience, Inc. was founded in 2012 and is headquartered in San Diego, California.

SKYE (Skye Bioscience, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $28.8M, a beta of 3.02 versus the broader market, a 52-week range of 0.566-5.75, average daily share volume of 525K, a public-listing history dating back to 2014, approximately 16 full-time employees. These structural characteristics shape how SKYE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.02 indicates SKYE 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 SKYE?

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 SKYE snapshot

As of May 15, 2026, spot at $0.82, ATM IV 20.60%, IV rank 0.70%, expected move 5.91%. The cash-secured put on SKYE 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 SKYE specifically: SKYE IV at 20.60% is on the cheap side of its 1-year range, which means a premium-selling SKYE cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.91% (roughly $0.05 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 SKYE expiries trade a higher absolute premium for lower per-day decay. Position sizing on SKYE should anchor to the underlying notional of $0.82 per share and to the trader's directional view on SKYE stock.

SKYE cash-secured put setup

The SKYE 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 SKYE near $0.82, the first option leg uses a $0.78 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SKYE 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 SKYE shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$0.78N/A

SKYE 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.

SKYE cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on SKYE. 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 SKYE

Cash-secured puts on SKYE earn premium while a trader waits to acquire SKYE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SKYE.

SKYE thesis for this cash-secured put

The market-implied 1-standard-deviation range for SKYE extends from approximately $0.77 on the downside to $0.87 on the upside. A SKYE cash-secured put lets a trader earn premium while waiting to acquire SKYE 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 SKYE IV rank near 0.70% 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 SKYE at 20.60%. As a Healthcare name, SKYE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SKYE-specific events.

SKYE 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. SKYE positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SKYE alongside the broader basket even when SKYE-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on SKYE carry tail risk when realized volatility exceeds the implied move; review historical SKYE earnings reactions and macro stress periods before sizing. Always rebuild the position from current SKYE chain quotes before placing a trade.

Frequently asked questions

What is a cash-secured put on SKYE?
A cash-secured put on SKYE is the cash-secured put strategy applied to SKYE (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 SKYE stock trading near $0.82, the strikes shown on this page are snapped to the nearest listed SKYE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SKYE 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 SKYE cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 20.60%), 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 SKYE cash-secured put?
The breakeven for the SKYE 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 SKYE market-implied 1-standard-deviation expected move is approximately 5.91%; 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 SKYE?
Cash-secured puts on SKYE earn premium while a trader waits to acquire SKYE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SKYE.
How does current SKYE implied volatility affect this cash-secured put?
SKYE ATM IV is at 20.60% with IV rank near 0.70%, 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.

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