FLMX Cash-Secured Put Strategy
FLMX (Franklin FTSE Mexico ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Under normal market conditions, the fund invests at least 80% of its assets in the component securities of the FTSE Mexico Capped Index and in depositary receipts representing such securities. The FTSE Mexico Capped Index is based on the FTSE Mexico Index and is designed to measure the performance of Mexican large- and mid-capitalization stocks. The fund is non-diversified.
FLMX (Franklin FTSE Mexico ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $83.8M, a beta of 1.08 versus the broader market, a 52-week range of 29.61-40.03, average daily share volume of 12K, a public-listing history dating back to 2017. These structural characteristics shape how FLMX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.08 places FLMX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FLMX 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 FLMX?
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.
FLMX snapshot
As of August 14, 2026, spot at $36.57, ATM IV 20.50%, IV rank 6.92%, expected move 5.88%. The cash-secured put on FLMX 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 35-day expiry.
Why this cash-secured put structure on FLMX specifically: FLMX IV at 20.50% is on the cheap side of its 1-year range, which means a premium-selling FLMX cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.88% (roughly $2.15 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 FLMX expiries trade a higher absolute premium for lower per-day decay. Position sizing on FLMX should anchor to the underlying notional of $36.57 per share and to the trader's directional view on FLMX etf.
FLMX cash-secured put setup
The FLMX 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 FLMX at $36.57 on that close, the first option leg uses a $34.74 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FLMX 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 FLMX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $34.74 | N/A |
FLMX 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.
FLMX cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on FLMX. 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 FLMX
Cash-secured puts on FLMX earn premium while a trader waits to acquire FLMX etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FLMX.
FLMX thesis for this cash-secured put
The market-implied 1-standard-deviation range for FLMX extends from approximately $34.42 on the downside to $38.72 on the upside. A FLMX cash-secured put lets a trader earn premium while waiting to acquire FLMX 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 FLMX IV rank near 6.92% 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 FLMX at 20.50%. As a Financial Services name, FLMX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FLMX-specific events.
FLMX 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. FLMX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FLMX alongside the broader basket even when FLMX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on FLMX carry tail risk when realized volatility exceeds the implied move; review historical FLMX earnings reactions and macro stress periods before sizing. Always rebuild the position from current FLMX chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on FLMX?
- A cash-secured put on FLMX is the cash-secured put strategy applied to FLMX (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 FLMX etf at $36.57 on the most recent close, the strikes shown on this page are snapped to the nearest listed FLMX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FLMX 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 FLMX cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 20.50%), 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 FLMX cash-secured put?
- The breakeven for the FLMX 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 FLMX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.88%; 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 FLMX?
- Cash-secured puts on FLMX earn premium while a trader waits to acquire FLMX etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FLMX.
- How does current FLMX implied volatility affect this cash-secured put?
- FLMX ATM IV is at 20.50% with IV rank near 6.92%, 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.