STIM Cash-Secured Put Strategy

STIM (Neuronetics, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.

Neuronetics, Inc., a commercial stage medical technology company, designs, develops, and markets products for patients with neurohealth disorders in the United States and internationally. The company offers NeuroStar Advanced Therapy System, a non-invasive and non-systemic office-based treatment to treat adult patients with major depressive disorder. Its NeuroStar Advanced Therapy System uses transcranial magnetic stimulation to create a pulsed, MRI-strength magnetic field that induces electrical currents designed to stimulate specific areas of the brain associated with mood. The company sells its products through its sales and customer support team to psychiatrists. Neuronetics, Inc. was incorporated in 2001 and is headquartered in Malvern, Pennsylvania.

STIM (Neuronetics, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $105.1M, a beta of 1.13 versus the broader market, a 52-week range of 0.8-4.85, average daily share volume of 2.0M, a public-listing history dating back to 2018, approximately 716 full-time employees. These structural characteristics shape how STIM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.13 places STIM 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 STIM?

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 STIM snapshot

As of May 15, 2026, spot at $1.31, ATM IV 167.60%, IV rank 35.38%, expected move 48.05%. The cash-secured put on STIM 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 STIM specifically: STIM IV at 167.60% is mid-range versus its 1-year history, so the credit collected on a STIM cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 48.05% (roughly $0.63 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 STIM expiries trade a higher absolute premium for lower per-day decay. Position sizing on STIM should anchor to the underlying notional of $1.31 per share and to the trader's directional view on STIM stock.

STIM cash-secured put setup

The STIM 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 STIM near $1.31, the first option leg uses a $1.24 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STIM 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 STIM shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$1.24N/A

STIM 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.

STIM cash-secured put payoff curve

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

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

STIM thesis for this cash-secured put

The market-implied 1-standard-deviation range for STIM extends from approximately $0.68 on the downside to $1.94 on the upside. A STIM cash-secured put lets a trader earn premium while waiting to acquire STIM 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 STIM IV rank near 35.38% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on STIM should anchor more to the directional view and the expected-move geometry. As a Healthcare name, STIM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STIM-specific events.

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

Frequently asked questions

What is a cash-secured put on STIM?
A cash-secured put on STIM is the cash-secured put strategy applied to STIM (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 STIM stock trading near $1.31, the strikes shown on this page are snapped to the nearest listed STIM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are STIM 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 STIM cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 167.60%), 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 STIM cash-secured put?
The breakeven for the STIM 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 STIM market-implied 1-standard-deviation expected move is approximately 48.05%; 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 STIM?
Cash-secured puts on STIM earn premium while a trader waits to acquire STIM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning STIM.
How does current STIM implied volatility affect this cash-secured put?
STIM ATM IV is at 167.60% with IV rank near 35.38%, 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.

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