How are EDV 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 EDV cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 454.90%), the computed maximum profit is $10.00 per contract and the computed maximum loss is -$6,289.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a EDV cash-secured put?

The breakeven for the EDV cash-secured put priced on this page is roughly $63.11 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 EDV market-implied 1-standard-deviation expected move is approximately 130.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current EDV implied volatility affect this cash-secured put?

EDV ATM IV is at 454.90% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

EDV Cash-Secured Put Strategy

EDV (Vanguard Extended Duration Treasury ETF), in the Financial Services sector, (Asset Management - Bonds industry), listed on AMEX.

This fund aims to replicate the returns of the Bloomberg U.S. Treasury STRIPS 20–30 Year Equal Par Bond Index. It operates under a passive investment strategy, using index sampling to gain comprehensive exposure to the extended-duration Treasury STRIPS market. The ETF offers a source of consistent income, backed by the superior creditworthiness of U.S. government bonds.

EDV (Vanguard Extended Duration Treasury ETF) trades in the Financial Services sector, specifically Asset Management - Bonds, with a market capitalization of approximately $4.29B, a beta of 3.41 versus the broader market, a 52-week range of 60.49-71.31, average daily share volume of 1.1M, a public-listing history dating back to 2008. These structural characteristics shape how EDV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.41 indicates EDV has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. EDV 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 EDV?

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 EDV snapshot

As of June 29, 2026, spot at $66.28, ATM IV 454.90%, IV rank 100.00%, expected move 130.42%. The cash-secured put on EDV 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 EDV specifically: EDV IV at 454.90% is rich versus its 1-year range, which favors premium-selling structures like a EDV cash-secured put, with a market-implied 1-standard-deviation move of approximately 130.42% (roughly $86.44 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 EDV expiries trade a higher absolute premium for lower per-day decay. Position sizing on EDV should anchor to the underlying notional of $66.28 per share and to the trader's directional view on EDV etf.

EDV cash-secured put setup

The EDV 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 EDV near $66.28, the first option leg uses a $63.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EDV 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 EDV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$63.00	$0.10

EDV cash-secured put risk and reward

Net Premium / Debit: +$10.00
Max Profit (per contract): $10.00
Max Loss (per contract): -$6,289.00
Breakeven(s): $63.11
Risk / Reward Ratio: 0.002

Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.

EDV cash-secured put payoff curve

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

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$6,289.00
$14.66	-77.9%	-$4,823.62
$29.32	-55.8%	-$3,358.25
$43.97	-33.7%	-$1,892.87
$58.63	-11.5%	-$427.49
$73.28	+10.6%	+$10.00
$87.93	+32.7%	+$10.00
$102.59	+54.8%	+$10.00
$117.24	+76.9%	+$10.00
$131.89	+99.0%	+$10.00

When traders use cash-secured put on EDV

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

EDV thesis for this cash-secured put

The market-implied 1-standard-deviation range for EDV extends from approximately $-20.16 on the downside to $152.72 on the upside. A EDV cash-secured put lets a trader earn premium while waiting to acquire EDV 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 EDV IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on EDV at 454.90%. As a Financial Services name, EDV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EDV-specific events.

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

Frequently asked questions

What is a cash-secured put on EDV?: A cash-secured put on EDV is the cash-secured put strategy applied to EDV (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 EDV etf trading near $66.28, the strikes shown on this page are snapped to the nearest listed EDV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are EDV 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 EDV cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 454.90%), the computed maximum profit is $10.00 per contract and the computed maximum loss is -$6,289.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a EDV cash-secured put?: The breakeven for the EDV cash-secured put priced on this page is roughly $63.11 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 EDV market-implied 1-standard-deviation expected move is approximately 130.42%; 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 EDV?: Cash-secured puts on EDV earn premium while a trader waits to acquire EDV etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning EDV.
How does current EDV implied volatility affect this cash-secured put?: EDV ATM IV is at 454.90% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.