How are SMMT 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 SMMT cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 95.37%), the computed maximum profit is $130.00 per contract and the computed maximum loss is -$1,269.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SMMT cash-secured put?

The breakeven for the SMMT cash-secured put priced on this page is roughly $12.70 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 SMMT market-implied 1-standard-deviation expected move is approximately 27.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SMMT implied volatility affect this cash-secured put?

SMMT ATM IV is at 95.37% with IV rank near 37.05%, 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.

SMMT Cash-Secured Put Strategy

SMMT (Summit Therapeutics Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Summit Therapeutics Inc. is a biopharmaceutical firm dedicated to discovering, developing, and commercializing therapeutic solutions, primarily targeting infectious diseases across the United States and Latin America. The company's clinical development pipeline is heavily concentrated on therapies for Clostridioides difficile infection (CDI). Its flagship product candidate, ridinilazole, is an orally administered small molecule antibiotic currently advancing through Phase III clinical trials as a treatment for CDI. Beyond its lead asset, Summit Therapeutics is also progressing SMT-738, designed to combat multidrug-resistant infections, notably carbapenem-resistant Enterobacteriaceae (CRE). Additionally, its DDS-04 series represents a potential therapeutic avenue for various infections caused by the Enterobacteriaceae family of bacteria. Established in 2003, the company maintains its headquarters in Cambridge, Massachusetts.

SMMT (Summit Therapeutics Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $10.87B, a beta of -1.31 versus the broader market, a 52-week range of 12.55-30.98, average daily share volume of 5.2M, a public-listing history dating back to 2015, approximately 159 full-time employees. These structural characteristics shape how SMMT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -1.31 indicates SMMT 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 SMMT?

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 SMMT snapshot

As of June 30, 2026, spot at $14.51, ATM IV 95.37%, IV rank 37.05%, expected move 27.34%. The cash-secured put on SMMT 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 31-day expiry.

Why this cash-secured put structure on SMMT specifically: SMMT IV at 95.37% is mid-range versus its 1-year history, so the credit collected on a SMMT cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 27.34% (roughly $3.97 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SMMT expiries trade a higher absolute premium for lower per-day decay. Position sizing on SMMT should anchor to the underlying notional of $14.51 per share and to the trader's directional view on SMMT stock.

SMMT cash-secured put setup

The SMMT 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 SMMT near $14.51, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SMMT chain at a 31-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 SMMT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$14.00	$1.30

SMMT cash-secured put risk and reward

Net Premium / Debit: +$130.00
Max Profit (per contract): $130.00
Max Loss (per contract): -$1,269.00
Breakeven(s): $12.70
Risk / Reward Ratio: 0.102

Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.

SMMT cash-secured put payoff curve

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

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$1,269.00
$3.22	-77.8%	-$948.29
$6.42	-55.7%	-$627.57
$9.63	-33.6%	-$306.86
$12.84	-11.5%	+$13.85
$16.05	+10.6%	+$130.00
$19.25	+32.7%	+$130.00
$22.46	+54.8%	+$130.00
$25.67	+76.9%	+$130.00
$28.87	+99.0%	+$130.00

When traders use cash-secured put on SMMT

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

SMMT thesis for this cash-secured put

The market-implied 1-standard-deviation range for SMMT extends from approximately $10.54 on the downside to $18.48 on the upside. A SMMT cash-secured put lets a trader earn premium while waiting to acquire SMMT 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 SMMT IV rank near 37.05% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on SMMT should anchor more to the directional view and the expected-move geometry. As a Healthcare name, SMMT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SMMT-specific events.

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

Frequently asked questions

What is a cash-secured put on SMMT?: A cash-secured put on SMMT is the cash-secured put strategy applied to SMMT (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 SMMT stock trading near $14.51, the strikes shown on this page are snapped to the nearest listed SMMT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SMMT 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 SMMT cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 95.37%), the computed maximum profit is $130.00 per contract and the computed maximum loss is -$1,269.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SMMT cash-secured put?: The breakeven for the SMMT cash-secured put priced on this page is roughly $12.70 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 SMMT market-implied 1-standard-deviation expected move is approximately 27.34%; 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 SMMT?: Cash-secured puts on SMMT earn premium while a trader waits to acquire SMMT stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SMMT.
How does current SMMT implied volatility affect this cash-secured put?: SMMT ATM IV is at 95.37% with IV rank near 37.05%, 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.