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 $226.2M, a beta of 1.11 versus the broader market, a 52-week range of 30.49-37.58, average daily share volume of 17K, 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 1.11 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.
FMAG snapshot
As of November 13, 2026, spot at $34.19. The cash-secured put on FMAG below is built from the November 13, 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 FMAG specifically: IV rank is unavailable in the current snapshot, so regime-based timing for FMAG is inferred from ATM IV alone. The 35-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 $34.19 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 November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FMAG at $34.19 on that close, the first option leg uses a $32.00 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 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 FMAG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $32.00 | $0.20 |
FMAG cash-secured put risk and reward
- Net Premium / Debit
- +$20.00
- Max Profit (per contract)
- $20.00
- Max Loss (per contract)
- -$3,179.00
- Breakeven(s)
- $31.80
- Risk / Reward Ratio
- 0.006
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% | -$3,179.00 |
| $7.57 | -77.9% | -$2,423.15 |
| $15.13 | -55.8% | -$1,667.30 |
| $22.69 | -33.6% | -$911.45 |
| $30.24 | -11.5% | -$155.60 |
| $37.80 | +10.6% | +$20.00 |
| $45.36 | +32.7% | +$20.00 |
| $52.92 | +54.8% | +$20.00 |
| $60.48 | +76.9% | +$20.00 |
| $68.04 | +99.0% | +$20.00 |
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
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 at $34.19 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed FMAG chain strike and the premiums come straight from that session's 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 November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV the current ATM IV), the computed maximum profit is $20.00 per contract and the computed maximum loss is -$3,179.00 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 $31.80 at expiration, derived from the November 13, 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.
- 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 the current ATM IV; IV rank context is unavailable in the current snapshot.