ZVRA Cash-Secured Put Strategy
ZVRA (Zevra Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Zevra Therapeutics, Inc., founded in 2006 and based in Celebration, Florida, is a biopharmaceutical company dedicated to discovering and developing innovative treatments for rare diseases. The company employs its proprietary Ligand Activated Therapy (LAT) technology to create novel prodrug versions of existing FDA-approved medications or to enable new applications for other compounds, primarily addressing serious medical conditions within the United States. Zevra's development pipeline is strategically concentrated on high-unmet-need therapeutic areas, including attention deficit hyperactivity disorder (ADHD), stimulant use disorder, and various rare central nervous system (CNS) conditions, such as idiopathic hypersomnia (IH). Their lead product candidate, KP1077, which is a prodrug of d-methylphenidate (known as serdexmethylphenidate), is currently in Phase II clinical trials for the treatment of both IH and narcolepsy. Another key prodrug candidate, KP879, is also advancing through Phase II studies for stimulant use disorder. In addition to its pipeline, Zevra has successfully secured FDA approval for two products: AZSTARYS, a once-daily treatment for ADHD in patients aged six years and older, and APADAZ, an immediate-release combination product containing benzhydrocodone (a prodrug of hydrocodone) and acetaminophen.
ZVRA (Zevra Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $799.2M, a trailing P/E of 6.36, a beta of 0.89 versus the broader market, a 52-week range of 7.16-14.27, average daily share volume of 1.5M, a public-listing history dating back to 2015, approximately 59 full-time employees. These structural characteristics shape how ZVRA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.89 places ZVRA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 6.36 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a cash-secured put on ZVRA?
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 ZVRA snapshot
As of June 30, 2026, spot at $14.19, ATM IV 48.00%, IV rank 11.65%, expected move 13.76%. The cash-secured put on ZVRA 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 ZVRA specifically: ZVRA IV at 48.00% is on the cheap side of its 1-year range, which means a premium-selling ZVRA cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 13.76% (roughly $1.95 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 ZVRA expiries trade a higher absolute premium for lower per-day decay. Position sizing on ZVRA should anchor to the underlying notional of $14.19 per share and to the trader's directional view on ZVRA stock.
ZVRA cash-secured put setup
The ZVRA 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 ZVRA near $14.19, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ZVRA 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 ZVRA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $13.00 | $0.15 |
ZVRA cash-secured put risk and reward
- Net Premium / Debit
- +$15.00
- Max Profit (per contract)
- $15.00
- Max Loss (per contract)
- -$1,284.00
- Breakeven(s)
- $12.85
- Risk / Reward Ratio
- 0.012
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
ZVRA cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ZVRA. 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 | -99.9% | -$1,284.00 |
| $3.15 | -77.8% | -$970.36 |
| $6.28 | -55.7% | -$656.72 |
| $9.42 | -33.6% | -$343.09 |
| $12.56 | -11.5% | -$29.45 |
| $15.69 | +10.6% | +$15.00 |
| $18.83 | +32.7% | +$15.00 |
| $21.96 | +54.8% | +$15.00 |
| $25.10 | +76.9% | +$15.00 |
| $28.24 | +99.0% | +$15.00 |
When traders use cash-secured put on ZVRA
Cash-secured puts on ZVRA earn premium while a trader waits to acquire ZVRA stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ZVRA.
ZVRA thesis for this cash-secured put
The market-implied 1-standard-deviation range for ZVRA extends from approximately $12.24 on the downside to $16.14 on the upside. A ZVRA cash-secured put lets a trader earn premium while waiting to acquire ZVRA 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 ZVRA IV rank near 11.65% 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 ZVRA at 48.00%. As a Healthcare name, ZVRA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ZVRA-specific events.
ZVRA 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. ZVRA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ZVRA alongside the broader basket even when ZVRA-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ZVRA carry tail risk when realized volatility exceeds the implied move; review historical ZVRA earnings reactions and macro stress periods before sizing. Always rebuild the position from current ZVRA chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on ZVRA?
- A cash-secured put on ZVRA is the cash-secured put strategy applied to ZVRA (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 ZVRA stock trading near $14.19, the strikes shown on this page are snapped to the nearest listed ZVRA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ZVRA 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 ZVRA cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 48.00%), the computed maximum profit is $15.00 per contract and the computed maximum loss is -$1,284.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ZVRA cash-secured put?
- The breakeven for the ZVRA cash-secured put priced on this page is roughly $12.85 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 ZVRA market-implied 1-standard-deviation expected move is approximately 13.76%; 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 ZVRA?
- Cash-secured puts on ZVRA earn premium while a trader waits to acquire ZVRA stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ZVRA.
- How does current ZVRA implied volatility affect this cash-secured put?
- ZVRA ATM IV is at 48.00% with IV rank near 11.65%, 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.