How are KCCA 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 KCCA cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 20.30%), the computed maximum profit is $53.00 per contract and the computed maximum loss is -$1,346.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

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

The breakeven for the KCCA cash-secured put priced on this page is roughly $13.47 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 KCCA market-implied 1-standard-deviation expected move is approximately 5.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

KCCA ATM IV is at 20.30% with IV rank near 2.88%, 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.

KCCA Cash-Secured Put Strategy

KCCA (KraneShares California Carbon Allowance Strategy ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The index is designed to measure the performance of a portfolio of futures contracts on carbon credits issued under the California Carbon Allowance “cap and trade” regime. The index includes only carbon credit futures that mature in December of the next one to two years. The fund will generally seek to obtain exposure to the same carbon credit futures that are in the index. The fund will invest at least 80% of its net assets in instruments that provide exposure to California Carbon Allowances. It is non-diversified.

KCCA (KraneShares California Carbon Allowance Strategy ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $107.6M, a beta of 0.08 versus the broader market, a 52-week range of 14.36-18.16, average daily share volume of 35K, a public-listing history dating back to 2021. These structural characteristics shape how KCCA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.08 indicates KCCA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. KCCA 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 KCCA?

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 KCCA snapshot

As of May 14, 2026, spot at $15.20, ATM IV 20.30%, IV rank 2.88%, expected move 5.82%. The cash-secured put on KCCA 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 34-day expiry.

Why this cash-secured put structure on KCCA specifically: KCCA IV at 20.30% is on the cheap side of its 1-year range, which means a premium-selling KCCA cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 5.82% (roughly $0.88 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KCCA expiries trade a higher absolute premium for lower per-day decay. Position sizing on KCCA should anchor to the underlying notional of $15.20 per share and to the trader's directional view on KCCA etf.

KCCA cash-secured put setup

The KCCA 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 KCCA near $15.20, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KCCA chain at a 34-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 KCCA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$14.00	$0.53

KCCA cash-secured put risk and reward

Net Premium / Debit: +$53.00
Max Profit (per contract): $53.00
Max Loss (per contract): -$1,346.00
Breakeven(s): $13.47
Risk / Reward Ratio: 0.039

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

KCCA cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on KCCA. 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	-99.9%	-$1,346.00
$3.37	-77.8%	-$1,010.03
$6.73	-55.7%	-$674.06
$10.09	-33.6%	-$338.09
$13.45	-11.5%	-$2.12
$16.81	+10.6%	+$53.00
$20.17	+32.7%	+$53.00
$23.53	+54.8%	+$53.00
$26.89	+76.9%	+$53.00
$30.25	+99.0%	+$53.00

When traders use cash-secured put on KCCA

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

KCCA thesis for this cash-secured put

The market-implied 1-standard-deviation range for KCCA extends from approximately $14.32 on the downside to $16.08 on the upside. A KCCA cash-secured put lets a trader earn premium while waiting to acquire KCCA 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 KCCA IV rank near 2.88% 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 KCCA at 20.30%. As a Financial Services name, KCCA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KCCA-specific events.

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

Frequently asked questions

What is a cash-secured put on KCCA?: A cash-secured put on KCCA is the cash-secured put strategy applied to KCCA (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 KCCA etf trading near $15.20, the strikes shown on this page are snapped to the nearest listed KCCA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are KCCA 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 KCCA cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 20.30%), the computed maximum profit is $53.00 per contract and the computed maximum loss is -$1,346.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a KCCA cash-secured put?: The breakeven for the KCCA cash-secured put priced on this page is roughly $13.47 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 KCCA market-implied 1-standard-deviation expected move is approximately 5.82%; 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 KCCA?: Cash-secured puts on KCCA earn premium while a trader waits to acquire KCCA etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning KCCA.
How does current KCCA implied volatility affect this cash-secured put?: KCCA ATM IV is at 20.30% with IV rank near 2.88%, 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.