COPJ Cash-Secured Put Strategy
COPJ (Sprott Junior Copper Miners ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Under typical circumstances, the fund commits a minimum of 80% of its total assets to the securities comprising its tracking index. This index is designed to mirror the financial performance of companies that generate at least 50% of their income or hold at least 50% of their assets in activities related to copper, specifically mining, exploration, development, and production. The index generally consists of 25 to 45 component firms. It is structured as a non-diversified investment vehicle.
COPJ (Sprott Junior Copper Miners ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $22.0M, a beta of 1.30 versus the broader market, a 52-week range of 24.16-53.945, average daily share volume of 105K, a public-listing history dating back to 2023. These structural characteristics shape how COPJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.30 places COPJ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. COPJ 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 COPJ?
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 COPJ snapshot
As of June 29, 2026, spot at $38.62, ATM IV 47.90%, expected move 13.73%. The cash-secured put on COPJ 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 18-day expiry.
Why this cash-secured put structure on COPJ specifically: IV rank is unavailable in the current snapshot, so regime-based timing for COPJ is inferred from ATM IV at 47.90% alone, with a market-implied 1-standard-deviation move of approximately 13.73% (roughly $5.30 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated COPJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on COPJ should anchor to the underlying notional of $38.62 per share and to the trader's directional view on COPJ etf.
COPJ cash-secured put setup
The COPJ 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 COPJ near $38.62, the first option leg uses a $37.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COPJ chain at a 18-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 COPJ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $37.00 | $1.30 |
COPJ cash-secured put risk and reward
- Net Premium / Debit
- +$130.00
- Max Profit (per contract)
- $130.00
- Max Loss (per contract)
- -$3,569.00
- Breakeven(s)
- $35.70
- Risk / Reward Ratio
- 0.036
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
COPJ cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on COPJ. 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% | -$3,569.00 |
| $8.55 | -77.9% | -$2,715.20 |
| $17.09 | -55.8% | -$1,861.40 |
| $25.62 | -33.7% | -$1,007.60 |
| $34.16 | -11.5% | -$153.80 |
| $42.70 | +10.6% | +$130.00 |
| $51.24 | +32.7% | +$130.00 |
| $59.78 | +54.8% | +$130.00 |
| $68.31 | +76.9% | +$130.00 |
| $76.85 | +99.0% | +$130.00 |
When traders use cash-secured put on COPJ
Cash-secured puts on COPJ earn premium while a trader waits to acquire COPJ etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning COPJ.
COPJ thesis for this cash-secured put
The market-implied 1-standard-deviation range for COPJ extends from approximately $33.32 on the downside to $43.92 on the upside. A COPJ cash-secured put lets a trader earn premium while waiting to acquire COPJ 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. As a Financial Services name, COPJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COPJ-specific events.
COPJ 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. COPJ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move COPJ alongside the broader basket even when COPJ-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on COPJ carry tail risk when realized volatility exceeds the implied move; review historical COPJ earnings reactions and macro stress periods before sizing. Always rebuild the position from current COPJ chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on COPJ?
- A cash-secured put on COPJ is the cash-secured put strategy applied to COPJ (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 COPJ etf trading near $38.62, the strikes shown on this page are snapped to the nearest listed COPJ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are COPJ 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 COPJ cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 47.90%), the computed maximum profit is $130.00 per contract and the computed maximum loss is -$3,569.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a COPJ cash-secured put?
- The breakeven for the COPJ cash-secured put priced on this page is roughly $35.70 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 COPJ market-implied 1-standard-deviation expected move is approximately 13.73%; 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 COPJ?
- Cash-secured puts on COPJ earn premium while a trader waits to acquire COPJ etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning COPJ.
- How does current COPJ implied volatility affect this cash-secured put?
- Current COPJ ATM IV is 47.90%; IV rank context is unavailable in the current snapshot.