AVLV Cash-Secured Put Strategy
AVLV (Avantis U.S. Large Cap Value ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Invests in a broad set of U.S. large-cap companies and is designed to increase expected returns* by focusing on firms trading at what we believe are low valuations with higher profitability ratios.**Pursues the benefits associated with indexing (diversification, low turnover, transparency of exposures), but with the ability to add value by making investment decisions using information in current prices.Efficient portfolio management and trading process that is designed to enhance returns while seeking to reduce unnecessary risks and costs for investors.Built to fit seamlessly into an investor's asset allocation.
AVLV (Avantis U.S. Large Cap Value ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $11.62B, a beta of 0.92 versus the broader market, a 52-week range of 64.36-88.465, average daily share volume of 720K, a public-listing history dating back to 2021. These structural characteristics shape how AVLV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places AVLV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVLV 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 AVLV?
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 AVLV snapshot
As of May 15, 2026, spot at $87.97, ATM IV 15.20%, IV rank 0.79%, expected move 4.36%. The cash-secured put on AVLV 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 AVLV specifically: AVLV IV at 15.20% is on the cheap side of its 1-year range, which means a premium-selling AVLV cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 4.36% (roughly $3.83 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 AVLV expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVLV should anchor to the underlying notional of $87.97 per share and to the trader's directional view on AVLV etf.
AVLV cash-secured put setup
The AVLV 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 AVLV near $87.97, the first option leg uses a $84.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVLV 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 AVLV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $84.00 | $0.44 |
AVLV cash-secured put risk and reward
- Net Premium / Debit
- +$44.00
- Max Profit (per contract)
- $44.00
- Max Loss (per contract)
- -$8,355.00
- Breakeven(s)
- $83.56
- Risk / Reward Ratio
- 0.005
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
AVLV cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on AVLV. 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 | -100.0% | -$8,355.00 |
| $19.46 | -77.9% | -$6,410.05 |
| $38.91 | -55.8% | -$4,465.09 |
| $58.36 | -33.7% | -$2,520.14 |
| $77.81 | -11.6% | -$575.18 |
| $97.26 | +10.6% | +$44.00 |
| $116.71 | +32.7% | +$44.00 |
| $136.16 | +54.8% | +$44.00 |
| $155.61 | +76.9% | +$44.00 |
| $175.06 | +99.0% | +$44.00 |
When traders use cash-secured put on AVLV
Cash-secured puts on AVLV earn premium while a trader waits to acquire AVLV etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AVLV.
AVLV thesis for this cash-secured put
The market-implied 1-standard-deviation range for AVLV extends from approximately $84.14 on the downside to $91.80 on the upside. A AVLV cash-secured put lets a trader earn premium while waiting to acquire AVLV 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 AVLV IV rank near 0.79% 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 AVLV at 15.20%. As a Financial Services name, AVLV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVLV-specific events.
AVLV 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. AVLV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVLV alongside the broader basket even when AVLV-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on AVLV carry tail risk when realized volatility exceeds the implied move; review historical AVLV earnings reactions and macro stress periods before sizing. Always rebuild the position from current AVLV chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on AVLV?
- A cash-secured put on AVLV is the cash-secured put strategy applied to AVLV (etf). 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 AVLV etf trading near $87.97, the strikes shown on this page are snapped to the nearest listed AVLV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AVLV 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 AVLV cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 15.20%), the computed maximum profit is $44.00 per contract and the computed maximum loss is -$8,355.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AVLV cash-secured put?
- The breakeven for the AVLV cash-secured put priced on this page is roughly $83.56 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 AVLV market-implied 1-standard-deviation expected move is approximately 4.36%; 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 AVLV?
- Cash-secured puts on AVLV earn premium while a trader waits to acquire AVLV etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AVLV.
- How does current AVLV implied volatility affect this cash-secured put?
- AVLV ATM IV is at 15.20% with IV rank near 0.79%, 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.