UFPT Cash-Secured Put Strategy
UFPT (UFP Technologies, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
UFP Technologies, Inc. designs and custom manufactures components, subassemblies, products, and packaging utilizing specialized foams, films, and plastics primarily for the medical market. Its single-use and single-patient devices and components are used in a range of medical devices, disposable wound care products, infection prevention, minimally invasive surgery, wearables, orthopedic soft goods, and orthopedic implant packaging. The company also provides engineered products and components to customers in the automotive, aerospace and defense, consumer, electronics, and industrial markets, which are applied in military uniform and gear components, automotive interior trim, athletic padding, environmentally protective packaging, air filtration, abrasive nail files, and protective cases and inserts. It markets and sells its products in the United States principally through a direct sales force, as well as independent manufacturer representatives. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts.
UFPT (UFP Technologies, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $1.70B, a trailing P/E of 24.67, a beta of 1.08 versus the broader market, a 52-week range of 173.86-274.93, average daily share volume of 224K, a public-listing history dating back to 1993, approximately 4K full-time employees. These structural characteristics shape how UFPT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.08 places UFPT 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 UFPT?
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 UFPT snapshot
As of May 15, 2026, spot at $215.12, ATM IV 40.70%, IV rank 39.77%, expected move 11.67%. The cash-secured put on UFPT 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 UFPT specifically: UFPT IV at 40.70% is mid-range versus its 1-year history, so the credit collected on a UFPT cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 11.67% (roughly $25.10 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 UFPT expiries trade a higher absolute premium for lower per-day decay. Position sizing on UFPT should anchor to the underlying notional of $215.12 per share and to the trader's directional view on UFPT stock.
UFPT cash-secured put setup
The UFPT 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 UFPT near $215.12, the first option leg uses a $200.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UFPT 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 UFPT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $200.00 | $5.05 |
UFPT cash-secured put risk and reward
- Net Premium / Debit
- +$505.00
- Max Profit (per contract)
- $505.00
- Max Loss (per contract)
- -$19,494.00
- Breakeven(s)
- $194.95
- Risk / Reward Ratio
- 0.026
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
UFPT cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on UFPT. 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 | -100.0% | -$19,494.00 |
| $47.57 | -77.9% | -$14,737.69 |
| $95.14 | -55.8% | -$9,981.38 |
| $142.70 | -33.7% | -$5,225.07 |
| $190.26 | -11.6% | -$468.75 |
| $237.83 | +10.6% | +$505.00 |
| $285.39 | +32.7% | +$505.00 |
| $332.95 | +54.8% | +$505.00 |
| $380.51 | +76.9% | +$505.00 |
| $428.08 | +99.0% | +$505.00 |
When traders use cash-secured put on UFPT
Cash-secured puts on UFPT earn premium while a trader waits to acquire UFPT stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning UFPT.
UFPT thesis for this cash-secured put
The market-implied 1-standard-deviation range for UFPT extends from approximately $190.02 on the downside to $240.22 on the upside. A UFPT cash-secured put lets a trader earn premium while waiting to acquire UFPT 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 UFPT IV rank near 39.77% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on UFPT should anchor more to the directional view and the expected-move geometry. As a Healthcare name, UFPT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UFPT-specific events.
UFPT 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. UFPT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UFPT alongside the broader basket even when UFPT-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on UFPT carry tail risk when realized volatility exceeds the implied move; review historical UFPT earnings reactions and macro stress periods before sizing. Always rebuild the position from current UFPT chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on UFPT?
- A cash-secured put on UFPT is the cash-secured put strategy applied to UFPT (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 UFPT stock trading near $215.12, the strikes shown on this page are snapped to the nearest listed UFPT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UFPT 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 UFPT cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 40.70%), the computed maximum profit is $505.00 per contract and the computed maximum loss is -$19,494.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UFPT cash-secured put?
- The breakeven for the UFPT cash-secured put priced on this page is roughly $194.95 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 UFPT market-implied 1-standard-deviation expected move is approximately 11.67%; 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 UFPT?
- Cash-secured puts on UFPT earn premium while a trader waits to acquire UFPT stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning UFPT.
- How does current UFPT implied volatility affect this cash-secured put?
- UFPT ATM IV is at 40.70% with IV rank near 39.77%, 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.