ZDGE Cash-Secured Put Strategy

ZDGE (Zedge, Inc.), in the Communication Services sector, (Internet Content & Information industry), listed on AMEX.

Zedge, Inc. operates a digital publishing and content platform worldwide. Its platform enables consumers to personalize their mobile devices with ringtones, home screen app icons, wallpapers, widgets, and notification sounds. The company was incorporated in 2008 and is based in New York, New York.

ZDGE (Zedge, Inc.) trades in the Communication Services sector, specifically Internet Content & Information, with a market capitalization of approximately $36.5M, a beta of 1.31 versus the broader market, a 52-week range of 2.12-4.89, average daily share volume of 68K, a public-listing history dating back to 2016, approximately 106 full-time employees. These structural characteristics shape how ZDGE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.31 indicates ZDGE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. ZDGE 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 ZDGE?

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 ZDGE snapshot

As of May 15, 2026, spot at $2.87, ATM IV 98.20%, IV rank 18.88%, expected move 28.15%. The cash-secured put on ZDGE 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 ZDGE specifically: ZDGE IV at 98.20% is on the cheap side of its 1-year range, which means a premium-selling ZDGE cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 28.15% (roughly $0.81 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 ZDGE expiries trade a higher absolute premium for lower per-day decay. Position sizing on ZDGE should anchor to the underlying notional of $2.87 per share and to the trader's directional view on ZDGE stock.

ZDGE cash-secured put setup

The ZDGE 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 ZDGE near $2.87, the first option leg uses a $2.73 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ZDGE 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 ZDGE shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$2.73N/A

ZDGE 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.

ZDGE cash-secured put payoff curve

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

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

ZDGE thesis for this cash-secured put

The market-implied 1-standard-deviation range for ZDGE extends from approximately $2.06 on the downside to $3.68 on the upside. A ZDGE cash-secured put lets a trader earn premium while waiting to acquire ZDGE 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 ZDGE IV rank near 18.88% 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 ZDGE at 98.20%. As a Communication Services name, ZDGE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ZDGE-specific events.

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

Frequently asked questions

What is a cash-secured put on ZDGE?
A cash-secured put on ZDGE is the cash-secured put strategy applied to ZDGE (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 ZDGE stock trading near $2.87, the strikes shown on this page are snapped to the nearest listed ZDGE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ZDGE 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 ZDGE cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 98.20%), 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 ZDGE cash-secured put?
The breakeven for the ZDGE 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 ZDGE market-implied 1-standard-deviation expected move is approximately 28.15%; 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 ZDGE?
Cash-secured puts on ZDGE earn premium while a trader waits to acquire ZDGE stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ZDGE.
How does current ZDGE implied volatility affect this cash-secured put?
ZDGE ATM IV is at 98.20% with IV rank near 18.88%, 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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