TCMD Cash-Secured Put Strategy
TCMD (Tactile Systems Technology, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Tactile Systems Technology, Inc., a medical technology company, engages in the development and provision of medical devices for chronic diseases in the United States. The company offers Flexitouch Plus system, a pneumatic compression device for the treatment of lymphedema; Entre system, a portable pneumatic compression device that is used for the at-home treatment of venous disorders, such as lymphedema and chronic venous insufficiency, including venous leg ulcers; and AffloVest, a portable high frequency chest wall oscillation test for the treatment of retained pulmonary secretions such as bronchiectasis, cystic fibrosis, and various neuromuscular disorders. The company was incorporated in 1995 and is headquartered in Minneapolis, Minnesota.
TCMD (Tactile Systems Technology, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $525.3M, a trailing P/E of 25.89, a beta of 0.82 versus the broader market, a 52-week range of 9.34-37.77, average daily share volume of 366K, a public-listing history dating back to 2016, approximately 1K full-time employees. These structural characteristics shape how TCMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places TCMD 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 TCMD?
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 TCMD snapshot
As of May 15, 2026, spot at $22.66, ATM IV 46.00%, IV rank 6.72%, expected move 13.19%. The cash-secured put on TCMD 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 TCMD specifically: TCMD IV at 46.00% is on the cheap side of its 1-year range, which means a premium-selling TCMD cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 13.19% (roughly $2.99 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 TCMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on TCMD should anchor to the underlying notional of $22.66 per share and to the trader's directional view on TCMD stock.
TCMD cash-secured put setup
The TCMD 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 TCMD near $22.66, the first option leg uses a $21.53 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TCMD 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 TCMD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $21.53 | N/A |
TCMD 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.
TCMD cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on TCMD. 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 TCMD
Cash-secured puts on TCMD earn premium while a trader waits to acquire TCMD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TCMD.
TCMD thesis for this cash-secured put
The market-implied 1-standard-deviation range for TCMD extends from approximately $19.67 on the downside to $25.65 on the upside. A TCMD cash-secured put lets a trader earn premium while waiting to acquire TCMD 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 TCMD IV rank near 6.72% 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 TCMD at 46.00%. As a Healthcare name, TCMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TCMD-specific events.
TCMD 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. TCMD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TCMD alongside the broader basket even when TCMD-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on TCMD carry tail risk when realized volatility exceeds the implied move; review historical TCMD earnings reactions and macro stress periods before sizing. Always rebuild the position from current TCMD chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on TCMD?
- A cash-secured put on TCMD is the cash-secured put strategy applied to TCMD (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 TCMD stock trading near $22.66, the strikes shown on this page are snapped to the nearest listed TCMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TCMD 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 TCMD cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 46.00%), 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 TCMD cash-secured put?
- The breakeven for the TCMD 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 TCMD market-implied 1-standard-deviation expected move is approximately 13.19%; 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 TCMD?
- Cash-secured puts on TCMD earn premium while a trader waits to acquire TCMD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TCMD.
- How does current TCMD implied volatility affect this cash-secured put?
- TCMD ATM IV is at 46.00% with IV rank near 6.72%, 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.