How are EPI 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 EPI cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 24.60%), the computed maximum profit is $47.50 per contract and the computed maximum loss is -$3,951.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

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

The breakeven for the EPI cash-secured put priced on this page is roughly $39.53 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 EPI market-implied 1-standard-deviation expected move is approximately 7.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

EPI ATM IV is at 24.60% with IV rank near 3.67%, 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.

EPI Cash-Secured Put Strategy

EPI (WisdomTree India Earnings Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.

Under normal circumstances, at least 95% of the fund's total assets (exclusive of collateral held from securities lending) will be invested in component securities of the index and investments that have economic characteristics that are substantially identical to the economic characteristics of such component securities. The index is comprised of companies incorporated and traded in India that are profitable and that are eligible to be purchased by foreign investors as of the annual index screening date. It is non-diversified.

EPI (WisdomTree India Earnings Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.73B, a beta of 0.60 versus the broader market, a 52-week range of 39.41-47.68, average daily share volume of 964K, a public-listing history dating back to 2008. These structural characteristics shape how EPI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.60 indicates EPI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. EPI 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 EPI?

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 EPI snapshot

As of May 15, 2026, spot at $42.09, ATM IV 24.60%, IV rank 3.67%, expected move 7.05%. The cash-secured put on EPI 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 EPI specifically: EPI IV at 24.60% is on the cheap side of its 1-year range, which means a premium-selling EPI cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 7.05% (roughly $2.97 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 EPI expiries trade a higher absolute premium for lower per-day decay. Position sizing on EPI should anchor to the underlying notional of $42.09 per share and to the trader's directional view on EPI etf.

EPI cash-secured put setup

The EPI 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 EPI near $42.09, the first option leg uses a $40.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EPI 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 EPI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$40.00	$0.48

EPI cash-secured put risk and reward

Net Premium / Debit: +$47.50
Max Profit (per contract): $47.50
Max Loss (per contract): -$3,951.50
Breakeven(s): $39.53
Risk / Reward Ratio: 0.012

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

EPI cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on EPI. 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%	-$3,951.50
$9.32	-77.9%	-$3,020.98
$18.62	-55.8%	-$2,090.45
$27.93	-33.7%	-$1,159.93
$37.23	-11.5%	-$229.41
$46.54	+10.6%	+$47.50
$55.84	+32.7%	+$47.50
$65.15	+54.8%	+$47.50
$74.45	+76.9%	+$47.50
$83.76	+99.0%	+$47.50

When traders use cash-secured put on EPI

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

EPI thesis for this cash-secured put

The market-implied 1-standard-deviation range for EPI extends from approximately $39.12 on the downside to $45.06 on the upside. A EPI cash-secured put lets a trader earn premium while waiting to acquire EPI 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 EPI IV rank near 3.67% 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 EPI at 24.60%. As a Financial Services name, EPI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EPI-specific events.

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

Frequently asked questions

What is a cash-secured put on EPI?: A cash-secured put on EPI is the cash-secured put strategy applied to EPI (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 EPI etf trading near $42.09, the strikes shown on this page are snapped to the nearest listed EPI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are EPI 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 EPI cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 24.60%), the computed maximum profit is $47.50 per contract and the computed maximum loss is -$3,951.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a EPI cash-secured put?: The breakeven for the EPI cash-secured put priced on this page is roughly $39.53 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 EPI market-implied 1-standard-deviation expected move is approximately 7.05%; 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 EPI?: Cash-secured puts on EPI earn premium while a trader waits to acquire EPI etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning EPI.
How does current EPI implied volatility affect this cash-secured put?: EPI ATM IV is at 24.60% with IV rank near 3.67%, 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.