How are IAI 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 IAI cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.20%), the computed maximum profit is $190.00 per contract and the computed maximum loss is -$18,109.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a IAI cash-secured put?

The breakeven for the IAI cash-secured put priced on this page is roughly $181.10 at expiration, derived from the August 14, 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. The IAI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current IAI implied volatility affect this cash-secured put?

IAI ATM IV is at 18.20% with IV rank near 5.13%, 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.

IAI Cash-Secured Put Strategy

IAI (iShares U.S. Broker-Dealers & Securities Exchanges ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The iShares U.S. Broker-Dealers & Securities Exchanges ETF (IAI) is designed to replicate the financial performance of an underlying benchmark. This index is exclusively made up of shares from U.S.-based companies that operate within the investment services industry.

IAI (iShares U.S. Broker-Dealers & Securities Exchanges ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.35B, a beta of 1.09 versus the broader market, a 52-week range of 157.78-196.44, average daily share volume of 103K, a public-listing history dating back to 2006. These structural characteristics shape how IAI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.09 places IAI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. IAI 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 IAI?

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.

IAI snapshot

As of August 14, 2026, spot at $191.36, ATM IV 18.20%, IV rank 5.13%, expected move 5.22%. The cash-secured put on IAI below is built from the August 14, 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 IAI specifically: IAI IV at 18.20% is on the cheap side of its 1-year range, which means a premium-selling IAI cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.22% (roughly $9.98 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 IAI expiries trade a higher absolute premium for lower per-day decay. Position sizing on IAI should anchor to the underlying notional of $191.36 per share and to the trader's directional view on IAI etf.

IAI cash-secured put setup

The IAI cash-secured put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With IAI at $191.36 on that close, the first option leg uses a $183.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IAI 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 IAI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$183.00	$1.90

IAI cash-secured put risk and reward

Net Premium / Debit: +$190.00
Max Profit (per contract): $190.00
Max Loss (per contract): -$18,109.00
Breakeven(s): $181.10
Risk / Reward Ratio: 0.010

Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.

IAI cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on IAI. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$18,109.00
$42.32	-77.9%	-$13,878.04
$84.63	-55.8%	-$9,647.07
$126.94	-33.7%	-$5,416.11
$169.25	-11.6%	-$1,185.14
$211.56	+10.6%	+$190.00
$253.87	+32.7%	+$190.00
$296.18	+54.8%	+$190.00
$338.49	+76.9%	+$190.00
$380.80	+99.0%	+$190.00

When traders use cash-secured put on IAI

Cash-secured puts on IAI earn premium while a trader waits to acquire IAI etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning IAI.

IAI thesis for this cash-secured put

The market-implied 1-standard-deviation range for IAI extends from approximately $181.38 on the downside to $201.34 on the upside. A IAI cash-secured put lets a trader earn premium while waiting to acquire IAI 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 IAI IV rank near 5.13% 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 IAI at 18.20%. As a Financial Services name, IAI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IAI-specific events.

IAI 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. IAI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IAI alongside the broader basket even when IAI-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on IAI carry tail risk when realized volatility exceeds the implied move; review historical IAI earnings reactions and macro stress periods before sizing. Always rebuild the position from current IAI chain quotes before placing a trade.

Frequently asked questions

What is a cash-secured put on IAI?: A cash-secured put on IAI is the cash-secured put strategy applied to IAI (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 IAI etf at $191.36 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed IAI chain strike and the premiums come straight from that session's bid/ask midpoint.
How are IAI 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 IAI cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.20%), the computed maximum profit is $190.00 per contract and the computed maximum loss is -$18,109.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IAI cash-secured put?: The breakeven for the IAI cash-secured put priced on this page is roughly $181.10 at expiration, derived from the August 14, 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. The IAI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.22%; 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 IAI?: Cash-secured puts on IAI earn premium while a trader waits to acquire IAI etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning IAI.
How does current IAI implied volatility affect this cash-secured put?: IAI ATM IV is at 18.20% with IV rank near 5.13%, 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.