FDLO Cash-Secured Put Strategy
FDLO (Fidelity Low Volatility Factor ETF ), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Focuses on securities, which generate similar returns as the broader market over time with less volatility.
FDLO (Fidelity Low Volatility Factor ETF ) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.39B, a beta of 0.69 versus the broader market, a 52-week range of 63.36-73.64, average daily share volume of 57K, a public-listing history dating back to 2016. These structural characteristics shape how FDLO etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.69 indicates FDLO has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FDLO 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 FDLO?
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.
FDLO snapshot
As of August 14, 2026, spot at $72.84, ATM IV 15.30%, IV rank 2.22%, expected move 4.39%. The cash-secured put on FDLO below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this cash-secured put structure on FDLO specifically: FDLO IV at 15.30% is on the cheap side of its 1-year range, which means a premium-selling FDLO cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 4.39% (roughly $3.20 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FDLO expiries trade a higher absolute premium for lower per-day decay. Position sizing on FDLO should anchor to the underlying notional of $72.84 per share and to the trader's directional view on FDLO etf.
FDLO cash-secured put setup
The FDLO cash-secured put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FDLO at $72.84 on that close, the first option leg uses a $69.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FDLO chain at a 35-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 FDLO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $69.00 | $0.24 |
FDLO cash-secured put risk and reward
- Net Premium / Debit
- +$24.00
- Max Profit (per contract)
- $24.00
- Max Loss (per contract)
- -$6,875.00
- Breakeven(s)
- $68.76
- Risk / Reward Ratio
- 0.003
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
FDLO cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on FDLO. 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% | -$6,875.00 |
| $16.11 | -77.9% | -$5,264.58 |
| $32.22 | -55.8% | -$3,654.16 |
| $48.32 | -33.7% | -$2,043.73 |
| $64.43 | -11.6% | -$433.31 |
| $80.53 | +10.6% | +$24.00 |
| $96.64 | +32.7% | +$24.00 |
| $112.74 | +54.8% | +$24.00 |
| $128.84 | +76.9% | +$24.00 |
| $144.95 | +99.0% | +$24.00 |
When traders use cash-secured put on FDLO
Cash-secured puts on FDLO earn premium while a trader waits to acquire FDLO etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FDLO.
FDLO thesis for this cash-secured put
The market-implied 1-standard-deviation range for FDLO extends from approximately $69.64 on the downside to $76.04 on the upside. A FDLO cash-secured put lets a trader earn premium while waiting to acquire FDLO 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 FDLO IV rank near 2.22% 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 FDLO at 15.30%. As a Financial Services name, FDLO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FDLO-specific events.
FDLO 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. FDLO positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FDLO alongside the broader basket even when FDLO-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on FDLO carry tail risk when realized volatility exceeds the implied move; review historical FDLO earnings reactions and macro stress periods before sizing. Always rebuild the position from current FDLO chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on FDLO?
- A cash-secured put on FDLO is the cash-secured put strategy applied to FDLO (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 FDLO etf at $72.84 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed FDLO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FDLO 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 FDLO cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 15.30%), the computed maximum profit is $24.00 per contract and the computed maximum loss is -$6,875.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FDLO cash-secured put?
- The breakeven for the FDLO cash-secured put priced on this page is roughly $68.76 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The FDLO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.39%; 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 FDLO?
- Cash-secured puts on FDLO earn premium while a trader waits to acquire FDLO etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FDLO.
- How does current FDLO implied volatility affect this cash-secured put?
- FDLO ATM IV is at 15.30% with IV rank near 2.22%, 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.