FUTY Cash-Secured Put Strategy
FUTY (Fidelity MSCI Utilities Index ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Tracks the performance of the MSCI USA IMI Utilities 25/50 Index.
FUTY (Fidelity MSCI Utilities Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.43B, a beta of 0.59 versus the broader market, a 52-week range of 51.05-61.51, average daily share volume of 363K, a public-listing history dating back to 2013. These structural characteristics shape how FUTY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.59 indicates FUTY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FUTY 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 FUTY?
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 FUTY snapshot
As of May 14, 2026, spot at $57.98, ATM IV 23.70%, IV rank 32.90%, expected move 6.79%. The cash-secured put on FUTY 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 35-day expiry.
Why this cash-secured put structure on FUTY specifically: FUTY IV at 23.70% is mid-range versus its 1-year history, so the credit collected on a FUTY cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 6.79% (roughly $3.94 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 FUTY expiries trade a higher absolute premium for lower per-day decay. Position sizing on FUTY should anchor to the underlying notional of $57.98 per share and to the trader's directional view on FUTY etf.
FUTY cash-secured put setup
The FUTY 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 FUTY near $57.98, the first option leg uses a $55.08 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FUTY 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 FUTY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $55.08 | N/A |
FUTY 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.
FUTY cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on FUTY. 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 FUTY
Cash-secured puts on FUTY earn premium while a trader waits to acquire FUTY etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FUTY.
FUTY thesis for this cash-secured put
The market-implied 1-standard-deviation range for FUTY extends from approximately $54.04 on the downside to $61.92 on the upside. A FUTY cash-secured put lets a trader earn premium while waiting to acquire FUTY 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 FUTY IV rank near 32.90% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on FUTY should anchor more to the directional view and the expected-move geometry. As a Financial Services name, FUTY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FUTY-specific events.
FUTY 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. FUTY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FUTY alongside the broader basket even when FUTY-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on FUTY carry tail risk when realized volatility exceeds the implied move; review historical FUTY earnings reactions and macro stress periods before sizing. Always rebuild the position from current FUTY chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on FUTY?
- A cash-secured put on FUTY is the cash-secured put strategy applied to FUTY (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 FUTY etf trading near $57.98, the strikes shown on this page are snapped to the nearest listed FUTY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FUTY 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 FUTY cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 23.70%), 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 FUTY cash-secured put?
- The breakeven for the FUTY cash-secured put priced on this page is no defined breakeven on the modeled curve 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 FUTY market-implied 1-standard-deviation expected move is approximately 6.79%; 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 FUTY?
- Cash-secured puts on FUTY earn premium while a trader waits to acquire FUTY etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning FUTY.
- How does current FUTY implied volatility affect this cash-secured put?
- FUTY ATM IV is at 23.70% with IV rank near 32.90%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.