TXMD Cash-Secured Put Strategy

TXMD (TherapeuticsMD, Inc.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.

TherapeuticsMD, Inc. operates as a women's healthcare company in the United States. The company offers IMVEXXY for the treatment of moderate-to-severe dyspareunia; BIJUVA, a bio-identical hormone therapy combination of 17ß-estradiol and progesterone for the treatment of moderate-to-severe vasomotor symptoms; and ANNOVERA, a ring-shaped contraceptive vaginal system. Its preclinical projects include the development of TX-005HR, a progesterone-alone transdermal cream; TX-006HR, an estradiol and progesterone transdermal cream; TX-007HR and TX-008HR, which are transdermal patch product candidates; and TX-009HR, an oral progesterone and estradiol formulation. It also manufactures and distributes branded and generic prescription prenatal vitamins under the vitaTrue, vitaPearl, vitaMedMD, and BocaGreenMD Prena1 brands. The company sells its prescription pharmaceutical products and prenatal vitamin products to wholesale distributors and retail pharmacy distributors. TherapeuticsMD, Inc. was founded in 2008 and is headquartered in Boca Raton, Florida.

TXMD (TherapeuticsMD, Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $23.4M, a trailing P/E of 130.61, a beta of 0.58 versus the broader market, a 52-week range of 0.98-2.95, average daily share volume of 25K, a public-listing history dating back to 2007, approximately 1 full-time employees. These structural characteristics shape how TXMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.58 indicates TXMD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 130.61 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.

What is a cash-secured put on TXMD?

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 TXMD snapshot

As of May 15, 2026, spot at $2.02, ATM IV 23.80%, IV rank 1.85%, expected move 6.82%. The cash-secured put on TXMD 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 TXMD specifically: TXMD IV at 23.80% is on the cheap side of its 1-year range, which means a premium-selling TXMD cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 6.82% (roughly $0.14 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 TXMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on TXMD should anchor to the underlying notional of $2.02 per share and to the trader's directional view on TXMD stock.

TXMD cash-secured put setup

The TXMD 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 TXMD near $2.02, the first option leg uses a $1.92 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TXMD 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 TXMD shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$1.92N/A

TXMD 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.

TXMD cash-secured put payoff curve

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

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

TXMD thesis for this cash-secured put

The market-implied 1-standard-deviation range for TXMD extends from approximately $1.88 on the downside to $2.16 on the upside. A TXMD cash-secured put lets a trader earn premium while waiting to acquire TXMD 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 TXMD IV rank near 1.85% 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 TXMD at 23.80%. As a Healthcare name, TXMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TXMD-specific events.

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

Frequently asked questions

What is a cash-secured put on TXMD?
A cash-secured put on TXMD is the cash-secured put strategy applied to TXMD (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 TXMD stock trading near $2.02, the strikes shown on this page are snapped to the nearest listed TXMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TXMD 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 TXMD cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 23.80%), 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 TXMD cash-secured put?
The breakeven for the TXMD 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 TXMD market-implied 1-standard-deviation expected move is approximately 6.82%; 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 TXMD?
Cash-secured puts on TXMD earn premium while a trader waits to acquire TXMD stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TXMD.
How does current TXMD implied volatility affect this cash-secured put?
TXMD ATM IV is at 23.80% with IV rank near 1.85%, 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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