FMAG Cash-Secured Put Strategy
FMAG (Fidelity Magellan ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The fund selectively targets top-tier businesses, encompassing both those that experience robust growth aligned with economic cycles and those exhibiting consistent, stable expansion, aiming to leverage profound, long-lasting societal and economic shifts.
FMAG (Fidelity Magellan ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $258.5M, a beta of 1.10 versus the broader market, a 52-week range of 30.49-37.19, average daily share volume of 21K, a public-listing history dating back to 2021. These structural characteristics shape how FMAG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.10 places FMAG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FMAG 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 FMAG?
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 FMAG snapshot
As of June 29, 2026, spot at $36.15, ATM IV 33.30%, expected move 9.55%. The cash-secured put on FMAG 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 18-day expiry.
Why this cash-secured put structure on FMAG specifically: IV rank is unavailable in the current snapshot, so regime-based timing for FMAG is inferred from ATM IV at 33.30% alone, with a market-implied 1-standard-deviation move of approximately 9.55% (roughly $3.45 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FMAG expiries trade a higher absolute premium for lower per-day decay. Position sizing on FMAG should anchor to the underlying notional of $36.15 per share and to the trader's directional view on FMAG etf.
FMAG cash-secured put setup
The FMAG 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 FMAG near $36.15, the first option leg uses a $34.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FMAG chain at a 18-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 FMAG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $34.00 | $0.29 |
FMAG cash-secured put risk and reward
- Net Premium / Debit
- +$29.00
- Max Profit (per contract)
- $29.00
- Max Loss (per contract)
- -$3,370.00
- Breakeven(s)
- $33.71
- Risk / Reward Ratio
- 0.009
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
FMAG cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on FMAG. 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% | -$3,370.00 |
| $8.00 | -77.9% | -$2,570.81 |
| $15.99 | -55.8% | -$1,771.63 |
| $23.99 | -33.6% | -$972.44 |
| $31.98 | -11.5% | -$173.26 |
| $39.97 | +10.6% | +$29.00 |
| $47.96 | +32.7% | +$29.00 |
| $55.95 | +54.8% | +$29.00 |
| $63.94 | +76.9% | +$29.00 |
| $71.94 | +99.0% | +$29.00 |
When traders use cash-secured put on FMAG
Cash-secured puts on FMAG earn premium while a trader waits to acquire FMAG etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FMAG.
FMAG thesis for this cash-secured put
The market-implied 1-standard-deviation range for FMAG extends from approximately $32.70 on the downside to $39.60 on the upside. A FMAG cash-secured put lets a trader earn premium while waiting to acquire FMAG 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. As a Financial Services name, FMAG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FMAG-specific events.
FMAG 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. FMAG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FMAG alongside the broader basket even when FMAG-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on FMAG carry tail risk when realized volatility exceeds the implied move; review historical FMAG earnings reactions and macro stress periods before sizing. Always rebuild the position from current FMAG chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on FMAG?
- A cash-secured put on FMAG is the cash-secured put strategy applied to FMAG (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 FMAG etf trading near $36.15, the strikes shown on this page are snapped to the nearest listed FMAG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FMAG 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 FMAG cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 33.30%), the computed maximum profit is $29.00 per contract and the computed maximum loss is -$3,370.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FMAG cash-secured put?
- The breakeven for the FMAG cash-secured put priced on this page is roughly $33.71 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 FMAG market-implied 1-standard-deviation expected move is approximately 9.55%; 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 FMAG?
- Cash-secured puts on FMAG earn premium while a trader waits to acquire FMAG etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FMAG.
- How does current FMAG implied volatility affect this cash-secured put?
- Current FMAG ATM IV is 33.30%; IV rank context is unavailable in the current snapshot.