How are EDZ 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 EDZ cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 131.70%), the computed maximum profit is $120.00 per contract and the computed maximum loss is -$1,279.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

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

The breakeven for the EDZ cash-secured put priced on this page is roughly $12.80 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 EDZ market-implied 1-standard-deviation expected move is approximately 37.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

EDZ ATM IV is at 131.70% with IV rank near 73.16%, 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.

EDZ Cash-Secured Put Strategy

EDZ (Direxion Daily MSCI Emerging Markets Bear 3X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.

The Direxion Daily MSCI Emerging Markets Bear 3X ETF (EDZ) is structured to deliver daily investment outcomes that reflect three times the inverse (or opposite) performance of the MSCI Emerging Markets Index. This target is measured before accounting for any fees or expenses. Investors should be aware, however, that there is no certainty these funds will consistently achieve their stated daily investment objectives.

EDZ (Direxion Daily MSCI Emerging Markets Bear 3X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $6.7M, a beta of -2.22 versus the broader market, a 52-week range of 13.06-55.2, average daily share volume of 337K, a public-listing history dating back to 2008. These structural characteristics shape how EDZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -2.22 indicates EDZ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. EDZ 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 EDZ?

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 EDZ snapshot

As of June 30, 2026, spot at $14.48, ATM IV 131.70%, IV rank 73.16%, expected move 37.76%. The cash-secured put on EDZ 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 EDZ specifically: EDZ IV at 131.70% is rich versus its 1-year range, which favors premium-selling structures like a EDZ cash-secured put, with a market-implied 1-standard-deviation move of approximately 37.76% (roughly $5.47 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 EDZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on EDZ should anchor to the underlying notional of $14.48 per share and to the trader's directional view on EDZ etf.

EDZ cash-secured put setup

The EDZ 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 EDZ near $14.48, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EDZ 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 EDZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$14.00	$1.20

EDZ cash-secured put risk and reward

Net Premium / Debit: +$120.00
Max Profit (per contract): $120.00
Max Loss (per contract): -$1,279.00
Breakeven(s): $12.80
Risk / Reward Ratio: 0.094

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

EDZ cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on EDZ. 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	-99.9%	-$1,279.00
$3.21	-77.8%	-$958.95
$6.41	-55.7%	-$638.90
$9.61	-33.6%	-$318.85
$12.81	-11.5%	+$1.20
$16.01	+10.6%	+$120.00
$19.21	+32.7%	+$120.00
$22.41	+54.8%	+$120.00
$25.61	+76.9%	+$120.00
$28.81	+99.0%	+$120.00

When traders use cash-secured put on EDZ

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

EDZ thesis for this cash-secured put

The market-implied 1-standard-deviation range for EDZ extends from approximately $9.01 on the downside to $19.95 on the upside. A EDZ cash-secured put lets a trader earn premium while waiting to acquire EDZ 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 EDZ IV rank near 73.16% 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 EDZ at 131.70%. As a Financial Services name, EDZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EDZ-specific events.

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

Frequently asked questions

What is a cash-secured put on EDZ?: A cash-secured put on EDZ is the cash-secured put strategy applied to EDZ (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 EDZ etf trading near $14.48, the strikes shown on this page are snapped to the nearest listed EDZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are EDZ 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 EDZ cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 131.70%), the computed maximum profit is $120.00 per contract and the computed maximum loss is -$1,279.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a EDZ cash-secured put?: The breakeven for the EDZ cash-secured put priced on this page is roughly $12.80 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 EDZ market-implied 1-standard-deviation expected move is approximately 37.76%; 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 EDZ?: Cash-secured puts on EDZ earn premium while a trader waits to acquire EDZ etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning EDZ.
How does current EDZ implied volatility affect this cash-secured put?: EDZ ATM IV is at 131.70% with IV rank near 73.16%, 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.