How are IHI 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 IHI cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 25.40%), the computed maximum profit is $32.50 per contract and the computed maximum loss is -$4,766.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

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

The breakeven for the IHI cash-secured put priced on this page is roughly $47.68 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 IHI market-implied 1-standard-deviation expected move is approximately 7.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

IHI ATM IV is at 25.40% with IV rank near 67.96%, 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.

IHI Cash-Secured Put Strategy

IHI (iShares U.S. Medical Devices ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The fund seeks to track the investment results of the Dow Jones U.S. Select Medical Equipment Index, which measures the performance of the medical equipment sector of the U.S. equity market, as defined by S&P Dow Jones Indices LLC. The index includes medical equipment companies, including manufacturers and distributors of medical devices such as magnetic resonance imaging scanners, prosthetics, pacemakers, X-ray machines, and other non-disposable medical devices. The fund is non-diversified.

IHI (iShares U.S. Medical Devices ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.99B, a beta of 0.86 versus the broader market, a 52-week range of 47.37-64.71, average daily share volume of 2.6M, a public-listing history dating back to 2006. These structural characteristics shape how IHI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.86 places IHI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. IHI 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 IHI?

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 IHI snapshot

As of June 29, 2026, spot at $50.66, ATM IV 25.40%, IV rank 67.96%, expected move 7.28%. The cash-secured put on IHI 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 IHI specifically: IHI IV at 25.40% is mid-range versus its 1-year history, so the credit collected on a IHI cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 7.28% (roughly $3.69 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 IHI expiries trade a higher absolute premium for lower per-day decay. Position sizing on IHI should anchor to the underlying notional of $50.66 per share and to the trader's directional view on IHI etf.

IHI cash-secured put setup

The IHI 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 IHI near $50.66, the first option leg uses a $48.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IHI 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 IHI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$48.00	$0.33

IHI cash-secured put risk and reward

Net Premium / Debit: +$32.50
Max Profit (per contract): $32.50
Max Loss (per contract): -$4,766.50
Breakeven(s): $47.68
Risk / Reward Ratio: 0.007

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

IHI cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on IHI. 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%	-$4,766.50
$11.21	-77.9%	-$3,646.49
$22.41	-55.8%	-$2,526.48
$33.61	-33.7%	-$1,406.47
$44.81	-11.5%	-$286.46
$56.01	+10.6%	+$32.50
$67.21	+32.7%	+$32.50
$78.41	+54.8%	+$32.50
$89.61	+76.9%	+$32.50
$100.81	+99.0%	+$32.50

When traders use cash-secured put on IHI

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

IHI thesis for this cash-secured put

The market-implied 1-standard-deviation range for IHI extends from approximately $46.97 on the downside to $54.35 on the upside. A IHI cash-secured put lets a trader earn premium while waiting to acquire IHI 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 IHI IV rank near 67.96% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on IHI should anchor more to the directional view and the expected-move geometry. As a Financial Services name, IHI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IHI-specific events.

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

Frequently asked questions

What is a cash-secured put on IHI?: A cash-secured put on IHI is the cash-secured put strategy applied to IHI (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 IHI etf trading near $50.66, the strikes shown on this page are snapped to the nearest listed IHI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are IHI 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 IHI cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 25.40%), the computed maximum profit is $32.50 per contract and the computed maximum loss is -$4,766.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a IHI cash-secured put?: The breakeven for the IHI cash-secured put priced on this page is roughly $47.68 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 IHI market-implied 1-standard-deviation expected move is approximately 7.28%; 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 IHI?: Cash-secured puts on IHI earn premium while a trader waits to acquire IHI etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning IHI.
How does current IHI implied volatility affect this cash-secured put?: IHI ATM IV is at 25.40% with IV rank near 67.96%, 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.