How are KSTR 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 KSTR cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 54.70%), the computed maximum profit is $125.00 per contract and the computed maximum loss is -$2,274.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

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

The breakeven for the KSTR cash-secured put priced on this page is roughly $22.75 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 KSTR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

KSTR ATM IV is at 54.70% with IV rank near 38.92%, 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.

KSTR Cash-Secured Put Strategy

KSTR (KraneShares China Technology & Semiconductor STAR 50 Index ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

Under typical market conditions, this fund is designed to invest at least 80% of its overall assets (including any funds acquired through borrowing) in securities that are either part of its reference index or possess analogous economic attributes. This benchmark index is composed of the equity shares of the 50 leading companies, measured by their publicly traded market capitalization, which are listed on the Shanghai Stock Exchange's Science and Technology Innovation Board, also known as the STAR Board. It operates as a non-diversified fund.

KSTR (KraneShares China Technology & Semiconductor STAR 50 Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $59.2M, a beta of 1.18 versus the broader market, a 52-week range of 14.81-32.54, average daily share volume of 613K, a public-listing history dating back to 2021. These structural characteristics shape how KSTR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.18 places KSTR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a cash-secured put on KSTR?

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.

KSTR snapshot

As of August 14, 2026, spot at $24.84, ATM IV 54.70%, IV rank 38.92%, expected move 15.68%. The cash-secured put on KSTR 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 KSTR specifically: KSTR IV at 54.70% is mid-range versus its 1-year history, so the credit collected on a KSTR cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 15.68% (roughly $3.90 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 KSTR expiries trade a higher absolute premium for lower per-day decay. Position sizing on KSTR should anchor to the underlying notional of $24.84 per share and to the trader's directional view on KSTR etf.

KSTR cash-secured put setup

The KSTR 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 KSTR at $24.84 on that close, the first option leg uses a $24.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KSTR 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 KSTR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$24.00	$1.25

KSTR cash-secured put risk and reward

Net Premium / Debit: +$125.00
Max Profit (per contract): $125.00
Max Loss (per contract): -$2,274.00
Breakeven(s): $22.75
Risk / Reward Ratio: 0.055

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

KSTR cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on KSTR. 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%	-$2,274.00
$5.50	-77.9%	-$1,724.88
$10.99	-55.7%	-$1,175.77
$16.48	-33.6%	-$626.65
$21.97	-11.5%	-$77.54
$27.47	+10.6%	+$125.00
$32.96	+32.7%	+$125.00
$38.45	+54.8%	+$125.00
$43.94	+76.9%	+$125.00
$49.43	+99.0%	+$125.00

When traders use cash-secured put on KSTR

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

KSTR thesis for this cash-secured put

The market-implied 1-standard-deviation range for KSTR extends from approximately $20.94 on the downside to $28.74 on the upside. A KSTR cash-secured put lets a trader earn premium while waiting to acquire KSTR 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 KSTR IV rank near 38.92% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on KSTR should anchor more to the directional view and the expected-move geometry. As a Financial Services name, KSTR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KSTR-specific events.

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

Frequently asked questions

What is a cash-secured put on KSTR?: A cash-secured put on KSTR is the cash-secured put strategy applied to KSTR (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 KSTR etf at $24.84 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed KSTR chain strike and the premiums come straight from that session's bid/ask midpoint.
How are KSTR 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 KSTR cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 54.70%), the computed maximum profit is $125.00 per contract and the computed maximum loss is -$2,274.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a KSTR cash-secured put?: The breakeven for the KSTR cash-secured put priced on this page is roughly $22.75 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 KSTR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.68%; 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 KSTR?: Cash-secured puts on KSTR earn premium while a trader waits to acquire KSTR etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning KSTR.
How does current KSTR implied volatility affect this cash-secured put?: KSTR ATM IV is at 54.70% with IV rank near 38.92%, 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.