BUYZ Cash-Secured Put Strategy
BUYZ (Franklin Disruptive Commerce ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The fund seeks capital appreciation by investing in equity securities inside and outside of the United States, including developing or emerging markets. The fund invests in companies that are relevant to its investment theme of disruptive commerce that the investment manager believes will provide the customer with a more customized, secure and time-efficient buying process.
BUYZ (Franklin Disruptive Commerce ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $7.0M, a beta of 1.30 versus the broader market, a 52-week range of 30.81-44.775, average daily share volume of 1K, a public-listing history dating back to 2020. These structural characteristics shape how BUYZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.30 places BUYZ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BUYZ 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 BUYZ?
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 BUYZ snapshot
As of May 15, 2026, spot at $33.44, ATM IV 32.40%, IV rank 22.86%, expected move 9.29%. The cash-secured put on BUYZ 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 BUYZ specifically: BUYZ IV at 32.40% is on the cheap side of its 1-year range, which means a premium-selling BUYZ cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.29% (roughly $3.11 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 BUYZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on BUYZ should anchor to the underlying notional of $33.44 per share and to the trader's directional view on BUYZ etf.
BUYZ cash-secured put setup
The BUYZ 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 BUYZ near $33.44, the first option leg uses a $31.77 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BUYZ 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 BUYZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $31.77 | N/A |
BUYZ 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.
BUYZ cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on BUYZ. 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 BUYZ
Cash-secured puts on BUYZ earn premium while a trader waits to acquire BUYZ etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning BUYZ.
BUYZ thesis for this cash-secured put
The market-implied 1-standard-deviation range for BUYZ extends from approximately $30.33 on the downside to $36.55 on the upside. A BUYZ cash-secured put lets a trader earn premium while waiting to acquire BUYZ 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 BUYZ IV rank near 22.86% 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 BUYZ at 32.40%. As a Financial Services name, BUYZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BUYZ-specific events.
BUYZ 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. BUYZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BUYZ alongside the broader basket even when BUYZ-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on BUYZ carry tail risk when realized volatility exceeds the implied move; review historical BUYZ earnings reactions and macro stress periods before sizing. Always rebuild the position from current BUYZ chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on BUYZ?
- A cash-secured put on BUYZ is the cash-secured put strategy applied to BUYZ (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 BUYZ etf trading near $33.44, the strikes shown on this page are snapped to the nearest listed BUYZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BUYZ 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 BUYZ cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 32.40%), 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 BUYZ cash-secured put?
- The breakeven for the BUYZ 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 BUYZ market-implied 1-standard-deviation expected move is approximately 9.29%; 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 BUYZ?
- Cash-secured puts on BUYZ earn premium while a trader waits to acquire BUYZ etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning BUYZ.
- How does current BUYZ implied volatility affect this cash-secured put?
- BUYZ ATM IV is at 32.40% with IV rank near 22.86%, 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.