MAGX Cash-Secured Put Strategy
MAGX (Roundhill Investments - Daily 2X Long Magnificent Seven ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.
The Roundhill Daily 2X Long Magnificent Seven ETF, or "the Fund," is engineered to achieve daily investment results that are twice (2X) the performance of the Roundhill Magnificent Seven ETF (the "Magnificent Seven ETF"), prior to accounting for fees and expenses. Critically, this objective is designed to be met only within a single trading day. As a result, the Fund presents a higher risk profile compared to non-leveraged alternatives, given its strategy to amplify daily market fluctuations. For holding periods extending beyond a single day, the Fund's overall returns will be determined by the cumulative effect of its daily compounded performance. It is highly probable that its performance over such extended intervals will diverge significantly from a straightforward two-fold return of the Magnificent Seven ETF's performance, even before factoring in expenses and charges.
MAGX (Roundhill Investments - Daily 2X Long Magnificent Seven ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $50.2M, a beta of 3.01 versus the broader market, a 52-week range of 38.72-63.47, average daily share volume of 111K, a public-listing history dating back to 2024. These structural characteristics shape how MAGX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.01 indicates MAGX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. MAGX 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 MAGX?
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.
MAGX snapshot
As of August 14, 2026, spot at $56.70, ATM IV 49.20%, IV rank 39.60%, expected move 14.11%. The cash-secured put on MAGX 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 MAGX specifically: MAGX IV at 49.20% is mid-range versus its 1-year history, so the credit collected on a MAGX cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.11% (roughly $8.00 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 MAGX expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAGX should anchor to the underlying notional of $56.70 per share and to the trader's directional view on MAGX etf.
MAGX cash-secured put setup
The MAGX 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 MAGX at $56.70 on that close, the first option leg uses a $54.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAGX 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 MAGX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $54.00 | $2.25 |
MAGX cash-secured put risk and reward
- Net Premium / Debit
- +$225.00
- Max Profit (per contract)
- $225.00
- Max Loss (per contract)
- -$5,174.00
- Breakeven(s)
- $51.75
- Risk / Reward Ratio
- 0.043
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
MAGX cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on MAGX. 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 | -100.0% | -$5,174.00 |
| $12.55 | -77.9% | -$3,920.44 |
| $25.08 | -55.8% | -$2,666.88 |
| $37.62 | -33.7% | -$1,413.33 |
| $50.15 | -11.5% | -$159.77 |
| $62.69 | +10.6% | +$225.00 |
| $75.22 | +32.7% | +$225.00 |
| $87.76 | +54.8% | +$225.00 |
| $100.29 | +76.9% | +$225.00 |
| $112.83 | +99.0% | +$225.00 |
When traders use cash-secured put on MAGX
Cash-secured puts on MAGX earn premium while a trader waits to acquire MAGX etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning MAGX.
MAGX thesis for this cash-secured put
The market-implied 1-standard-deviation range for MAGX extends from approximately $48.70 on the downside to $64.70 on the upside. A MAGX cash-secured put lets a trader earn premium while waiting to acquire MAGX 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 MAGX IV rank near 39.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on MAGX should anchor more to the directional view and the expected-move geometry. As a Financial Services name, MAGX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAGX-specific events.
MAGX 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. MAGX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MAGX alongside the broader basket even when MAGX-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on MAGX carry tail risk when realized volatility exceeds the implied move; review historical MAGX earnings reactions and macro stress periods before sizing. Always rebuild the position from current MAGX chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on MAGX?
- A cash-secured put on MAGX is the cash-secured put strategy applied to MAGX (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 MAGX etf at $56.70 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MAGX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are MAGX 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 MAGX cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 49.20%), the computed maximum profit is $225.00 per contract and the computed maximum loss is -$5,174.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MAGX cash-secured put?
- The breakeven for the MAGX cash-secured put priced on this page is roughly $51.75 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 MAGX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.11%; 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 MAGX?
- Cash-secured puts on MAGX earn premium while a trader waits to acquire MAGX etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning MAGX.
- How does current MAGX implied volatility affect this cash-secured put?
- MAGX ATM IV is at 49.20% with IV rank near 39.60%, 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.