TNDM Cash-Secured Put Strategy
TNDM (Tandem Diabetes Care, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Tandem Diabetes Care, Inc., a medical device company, designs, develops, and commercializes various products for people with insulin-dependent diabetes in the United States and internationally. The company's flagship product is the t:slim X2 insulin delivery system, a pump platform that comprises t:slim X2 pump, its 300-unit disposable insulin cartridge, and an infusion set. It also provides t:slim X2 insulin with Basal-IQ and control IQ technology; t:slim X2 with G5 Integration; and Tandem Device Updater, a tool that allows users to update their pump's software. In addition, the company offers t:connect, a web-based data management application, which provides a visual way to display diabetes therapy management data from the pump, continuous glucose monitoring, and supported blood glucose meters for users, their caregivers, and their healthcare providers; and Sugarmate, a mobile app for people with diabetes who use insulin. It has development and commercialization agreements with Dexcom, Inc. and Abbott Laboratories. The company was formerly known as Phluid Inc. and changed its name to Tandem Diabetes Care, Inc. in January 2008.
TNDM (Tandem Diabetes Care, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $966.9M, a beta of 1.64 versus the broader market, a 52-week range of 9.98-29.65, average daily share volume of 2.4M, a public-listing history dating back to 2013, approximately 3K full-time employees. These structural characteristics shape how TNDM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.64 indicates TNDM 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 TNDM?
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 TNDM snapshot
As of May 15, 2026, spot at $12.59, ATM IV 72.80%, IV rank 19.86%, expected move 20.87%. The cash-secured put on TNDM 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 TNDM specifically: TNDM IV at 72.80% is on the cheap side of its 1-year range, which means a premium-selling TNDM cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 20.87% (roughly $2.63 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 TNDM expiries trade a higher absolute premium for lower per-day decay. Position sizing on TNDM should anchor to the underlying notional of $12.59 per share and to the trader's directional view on TNDM stock.
TNDM cash-secured put setup
The TNDM 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 TNDM near $12.59, the first option leg uses a $12.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TNDM 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 TNDM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $12.00 | $0.80 |
TNDM cash-secured put risk and reward
- Net Premium / Debit
- +$80.00
- Max Profit (per contract)
- $80.00
- Max Loss (per contract)
- -$1,119.00
- Breakeven(s)
- $11.20
- Risk / Reward Ratio
- 0.071
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
TNDM cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on TNDM. 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 | -99.9% | -$1,119.00 |
| $2.79 | -77.8% | -$840.74 |
| $5.58 | -55.7% | -$562.48 |
| $8.36 | -33.6% | -$284.22 |
| $11.14 | -11.5% | -$5.95 |
| $13.92 | +10.6% | +$80.00 |
| $16.71 | +32.7% | +$80.00 |
| $19.49 | +54.8% | +$80.00 |
| $22.27 | +76.9% | +$80.00 |
| $25.05 | +99.0% | +$80.00 |
When traders use cash-secured put on TNDM
Cash-secured puts on TNDM earn premium while a trader waits to acquire TNDM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TNDM.
TNDM thesis for this cash-secured put
The market-implied 1-standard-deviation range for TNDM extends from approximately $9.96 on the downside to $15.22 on the upside. A TNDM cash-secured put lets a trader earn premium while waiting to acquire TNDM 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 TNDM IV rank near 19.86% 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 TNDM at 72.80%. As a Healthcare name, TNDM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TNDM-specific events.
TNDM 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. TNDM positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TNDM alongside the broader basket even when TNDM-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on TNDM carry tail risk when realized volatility exceeds the implied move; review historical TNDM earnings reactions and macro stress periods before sizing. Always rebuild the position from current TNDM chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on TNDM?
- A cash-secured put on TNDM is the cash-secured put strategy applied to TNDM (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 TNDM stock trading near $12.59, the strikes shown on this page are snapped to the nearest listed TNDM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TNDM 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 TNDM cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 72.80%), the computed maximum profit is $80.00 per contract and the computed maximum loss is -$1,119.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TNDM cash-secured put?
- The breakeven for the TNDM cash-secured put priced on this page is roughly $11.20 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 TNDM market-implied 1-standard-deviation expected move is approximately 20.87%; 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 TNDM?
- Cash-secured puts on TNDM earn premium while a trader waits to acquire TNDM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TNDM.
- How does current TNDM implied volatility affect this cash-secured put?
- TNDM ATM IV is at 72.80% with IV rank near 19.86%, 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.