XOMA Cash-Secured Put Strategy

XOMA (XOMA Royalty Corp.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

XOMA Royalty Corp. operates as a biotechnology royalty aggregator in Europe, the United States, and the Asia Pacific. The company engages in helping biotech companies for enhancing human health. It acquires the potential future economics associated with pre-commercial therapeutic candidates that have been licensed to pharmaceutical or biotechnology companies. The company focuses on early to mid-stage clinical assets primarily in Phase 1 and 2 with commercial sales potential that are licensed to partners. It has a portfolio with approximately 70 assets. XOMA Corporation was incorporated in 1981 and is headquartered in Emeryville, California.

XOMA (XOMA Royalty Corp.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $507.0M, a trailing P/E of 15.78, a beta of 0.90 versus the broader market, a 52-week range of 22.29-42.81, average daily share volume of 225K, a public-listing history dating back to 1986, approximately 13 full-time employees. These structural characteristics shape how XOMA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.90 places XOMA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. XOMA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a cash-secured put on XOMA?

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 XOMA snapshot

As of May 15, 2026, spot at $41.67, ATM IV 9.60%, IV rank 0.16%, expected move 2.75%. The cash-secured put on XOMA 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 XOMA specifically: XOMA IV at 9.60% is on the cheap side of its 1-year range, which means a premium-selling XOMA cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 2.75% (roughly $1.15 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 XOMA expiries trade a higher absolute premium for lower per-day decay. Position sizing on XOMA should anchor to the underlying notional of $41.67 per share and to the trader's directional view on XOMA stock.

XOMA cash-secured put setup

The XOMA 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 XOMA near $41.67, the first option leg uses a $39.59 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XOMA 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 XOMA shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$39.59N/A

XOMA 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.

XOMA cash-secured put payoff curve

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

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

XOMA thesis for this cash-secured put

The market-implied 1-standard-deviation range for XOMA extends from approximately $40.52 on the downside to $42.82 on the upside. A XOMA cash-secured put lets a trader earn premium while waiting to acquire XOMA 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 XOMA IV rank near 0.16% 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 XOMA at 9.60%. As a Healthcare name, XOMA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XOMA-specific events.

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

Frequently asked questions

What is a cash-secured put on XOMA?
A cash-secured put on XOMA is the cash-secured put strategy applied to XOMA (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 XOMA stock trading near $41.67, the strikes shown on this page are snapped to the nearest listed XOMA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are XOMA 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 XOMA cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 9.60%), 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 XOMA cash-secured put?
The breakeven for the XOMA 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 XOMA market-implied 1-standard-deviation expected move is approximately 2.75%; 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 XOMA?
Cash-secured puts on XOMA earn premium while a trader waits to acquire XOMA stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning XOMA.
How does current XOMA implied volatility affect this cash-secured put?
XOMA ATM IV is at 9.60% with IV rank near 0.16%, 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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