FEMR Cash-Secured Put Strategy
FEMR (Fidelity Covington Trust - Fidelity Enhanced Emerging Markets ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
FEMR is actively managed and aims for capital appreciation by investing at least 80% of assets in securities and depositary receipts of emerging market issuers. These markets are defined by MSCI and include low- to middle-income economies as per the World Bank. The fund primarily invests in common stocks, diversifying across various emerging countries. A research-driven approach is used to identify long-term stock return drivers such as valuation, growth, and quality. This research is systematically applied with a proprietary portfolio construction and risk management framework. The objective is to select a diversified stock group that potentially offers higher total returns than the MSCI Emerging Markets Index.
FEMR (Fidelity Covington Trust - Fidelity Enhanced Emerging Markets ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $188.2M, a beta of 1.06 versus the broader market, a 52-week range of 30.23-44.41, average daily share volume of 43K, a public-listing history dating back to 2024. These structural characteristics shape how FEMR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.06 places FEMR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FEMR 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 FEMR?
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.
FEMR snapshot
As of September 29, 2026, spot at $41.62, ATM IV 30.10%, IV rank 5.76%, expected move 8.63%. The cash-secured put on FEMR below is built from the 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 FEMR specifically: FEMR IV at 30.10% is on the cheap side of its 1-year range, which means a premium-selling FEMR cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.63% (roughly $3.59 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 FEMR expiries trade a higher absolute premium for lower per-day decay. Position sizing on FEMR should anchor to the underlying notional of $41.62 per share and to the trader's directional view on FEMR etf.
FEMR cash-secured put setup
The FEMR 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 FEMR at $41.62 on that close, the first option leg uses a $39.54 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FEMR 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 FEMR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $39.54 | N/A |
FEMR cash-secured put risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
FEMR cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on FEMR. 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.
When traders use cash-secured put on FEMR
Cash-secured puts on FEMR earn premium while a trader waits to acquire FEMR etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FEMR.
FEMR thesis for this cash-secured put
The market-implied 1-standard-deviation range for FEMR extends from approximately $38.03 on the downside to $45.21 on the upside. A FEMR cash-secured put lets a trader earn premium while waiting to acquire FEMR 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 FEMR IV rank near 5.76% 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 FEMR at 30.10%. As a Financial Services name, FEMR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FEMR-specific events.
FEMR 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. FEMR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FEMR alongside the broader basket even when FEMR-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on FEMR carry tail risk when realized volatility exceeds the implied move; review historical FEMR earnings reactions and macro stress periods before sizing. Always rebuild the position from current FEMR chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on FEMR?
- A cash-secured put on FEMR is the cash-secured put strategy applied to FEMR (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 FEMR etf at $41.62 on the most recent close, the strikes shown on this page are snapped to the nearest listed FEMR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FEMR 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 FEMR cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 30.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FEMR cash-secured put?
- The breakeven for the FEMR cash-secured put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 FEMR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.63%; 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 FEMR?
- Cash-secured puts on FEMR earn premium while a trader waits to acquire FEMR etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FEMR.
- How does current FEMR implied volatility affect this cash-secured put?
- FEMR ATM IV is at 30.10% with IV rank near 5.76%, 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.