How are VIR 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 VIR cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 67.00%), the computed maximum profit is $50.00 per contract and the computed maximum loss is -$949.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VIR cash-secured put?

The breakeven for the VIR cash-secured put priced on this page is roughly $9.50 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 VIR market-implied 1-standard-deviation expected move is approximately 19.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VIR implied volatility affect this cash-secured put?

VIR ATM IV is at 67.00% with IV rank near 11.43%, 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.

VIR Cash-Secured Put Strategy

VIR (Vir Biotechnology, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Vir Biotechnology, Inc. operates as an immunology company with commercialized products, dedicated to devising therapeutic solutions for the treatment and prevention of significant infectious diseases. Its pipeline features several key candidates: Sotrovimab (branded as Xevudy, or VIR-7832), a neutralizing monoclonal antibody for both treating and preventing SARS-CoV-2 infection; VIR-2218 and VIR-3434, aimed at hepatitis B virus; VIR-2482, targeting the prevention of influenza A virus; and VIR-1111, designed to prevent human immunodeficiency virus. The firm maintains a robust network of strategic partnerships and collaborations. These include grant support from organizations like the Bill & Melinda Gates Foundation and the National Institutes of Health. It holds option and licensing arrangements with entities such as Brii Biosciences Limited, and a collaboration and license agreement with Alnylam Pharmaceuticals, Inc. Further licensing relationships exist with The Rockefeller University and MedImmune, Inc.

VIR (Vir Biotechnology, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.69B, a beta of 1.64 versus the broader market, a 52-week range of 4.155-11.66, average daily share volume of 1.9M, a public-listing history dating back to 2019, approximately 408 full-time employees. These structural characteristics shape how VIR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.64 indicates VIR 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 VIR?

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 VIR snapshot

As of June 30, 2026, spot at $10.25, ATM IV 67.00%, IV rank 11.43%, expected move 19.21%. The cash-secured put on VIR 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 17-day expiry.

Why this cash-secured put structure on VIR specifically: VIR IV at 67.00% is on the cheap side of its 1-year range, which means a premium-selling VIR cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 19.21% (roughly $1.97 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated VIR expiries trade a higher absolute premium for lower per-day decay. Position sizing on VIR should anchor to the underlying notional of $10.25 per share and to the trader's directional view on VIR stock.

VIR cash-secured put setup

The VIR 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 VIR near $10.25, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VIR chain at a 17-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 VIR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$10.00	$0.50

VIR cash-secured put risk and reward

Net Premium / Debit: +$50.00
Max Profit (per contract): $50.00
Max Loss (per contract): -$949.00
Breakeven(s): $9.50
Risk / Reward Ratio: 0.053

Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.

VIR cash-secured put payoff curve

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

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$949.00
$2.28	-77.8%	-$722.48
$4.54	-55.7%	-$495.95
$6.81	-33.6%	-$269.43
$9.07	-11.5%	-$42.91
$11.34	+10.6%	+$50.00
$13.60	+32.7%	+$50.00
$15.87	+54.8%	+$50.00
$18.13	+76.9%	+$50.00
$20.40	+99.0%	+$50.00

When traders use cash-secured put on VIR

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

VIR thesis for this cash-secured put

The market-implied 1-standard-deviation range for VIR extends from approximately $8.28 on the downside to $12.22 on the upside. A VIR cash-secured put lets a trader earn premium while waiting to acquire VIR 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 VIR IV rank near 11.43% 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 VIR at 67.00%. As a Healthcare name, VIR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VIR-specific events.

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

Frequently asked questions

What is a cash-secured put on VIR?: A cash-secured put on VIR is the cash-secured put strategy applied to VIR (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 VIR stock trading near $10.25, the strikes shown on this page are snapped to the nearest listed VIR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are VIR 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 VIR cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 67.00%), the computed maximum profit is $50.00 per contract and the computed maximum loss is -$949.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VIR cash-secured put?: The breakeven for the VIR cash-secured put priced on this page is roughly $9.50 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 VIR market-implied 1-standard-deviation expected move is approximately 19.21%; 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 VIR?: Cash-secured puts on VIR earn premium while a trader waits to acquire VIR stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning VIR.
How does current VIR implied volatility affect this cash-secured put?: VIR ATM IV is at 67.00% with IV rank near 11.43%, 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.