VREX Cash-Secured Put Strategy
VREX (Varex Imaging Corporation), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Varex Imaging Corporation (VREX) specializes in the development and production of X-ray imaging components. Its operations are divided into two primary divisions: Medical and Industrial. Within the Medical segment, Varex provides a comprehensive range of X-ray imaging components. These include essential hardware like X-ray tubes, digital detectors, and high-voltage connectors, alongside sophisticated software solutions for image processing, 3D reconstruction, and computer-aided diagnostics. The segment also supplies critical ancillary devices such as collimators, generators, and automatic exposure control mechanisms. These medical products serve a wide spectrum of applications, from general diagnostic imaging like radiography and fluoroscopy, to specialized areas such as mammography, computed tomography (CT), cardiac procedures, dental imaging, and surgical applications.
VREX (Varex Imaging Corporation) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $433.2M, a beta of 0.90 versus the broader market, a 52-week range of 6.76-14.565, average daily share volume of 395K, a public-listing history dating back to 2017, approximately 2K full-time employees. These structural characteristics shape how VREX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.90 places VREX 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 VREX?
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 VREX snapshot
As of June 30, 2026, spot at $10.20, ATM IV 112.50%, IV rank 21.78%, expected move 32.25%. The cash-secured put on VREX 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 VREX specifically: VREX IV at 112.50% is on the cheap side of its 1-year range, which means a premium-selling VREX cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 32.25% (roughly $3.29 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 VREX expiries trade a higher absolute premium for lower per-day decay. Position sizing on VREX should anchor to the underlying notional of $10.20 per share and to the trader's directional view on VREX stock.
VREX cash-secured put setup
The VREX 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 VREX near $10.20, the first option leg uses a $9.69 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VREX 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 VREX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $9.69 | N/A |
VREX 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.
VREX cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on VREX. 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 VREX
Cash-secured puts on VREX earn premium while a trader waits to acquire VREX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning VREX.
VREX thesis for this cash-secured put
The market-implied 1-standard-deviation range for VREX extends from approximately $6.91 on the downside to $13.49 on the upside. A VREX cash-secured put lets a trader earn premium while waiting to acquire VREX 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 VREX IV rank near 21.78% 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 VREX at 112.50%. As a Healthcare name, VREX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VREX-specific events.
VREX 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. VREX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VREX alongside the broader basket even when VREX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on VREX carry tail risk when realized volatility exceeds the implied move; review historical VREX earnings reactions and macro stress periods before sizing. Always rebuild the position from current VREX chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on VREX?
- A cash-secured put on VREX is the cash-secured put strategy applied to VREX (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 VREX stock trading near $10.20, the strikes shown on this page are snapped to the nearest listed VREX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are VREX 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 VREX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 112.50%), 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 VREX cash-secured put?
- The breakeven for the VREX 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 VREX market-implied 1-standard-deviation expected move is approximately 32.25%; 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 VREX?
- Cash-secured puts on VREX earn premium while a trader waits to acquire VREX stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning VREX.
- How does current VREX implied volatility affect this cash-secured put?
- VREX ATM IV is at 112.50% with IV rank near 21.78%, 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.