MAGY Cash-Secured Put Strategy
MAGY (Roundhill Investments - Magnificent Seven Covered Call ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.
The Roundhill Magnificent Seven Covered Call ETF (“MAGY”) implements a covered call strategy on the “Magnificent Seven” stocks. The Fund offers exposure to the Magnificent Seven, subject to a cap, while providing the potential for current income. MAGY is an actively-managed ETF.
MAGY (Roundhill Investments - Magnificent Seven Covered Call ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $95.4M, a beta of 0.91 versus the broader market, a 52-week range of 43.01-58.34, average daily share volume of 90K, a public-listing history dating back to 2025. These structural characteristics shape how MAGY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.91 places MAGY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MAGY 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 MAGY?
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 MAGY snapshot
As of May 15, 2026, spot at $47.31, ATM IV 28.80%, IV rank 4.65%, expected move 8.26%. The cash-secured put on MAGY 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 MAGY specifically: MAGY IV at 28.80% is on the cheap side of its 1-year range, which means a premium-selling MAGY cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 8.26% (roughly $3.91 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 MAGY expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAGY should anchor to the underlying notional of $47.31 per share and to the trader's directional view on MAGY etf.
MAGY cash-secured put setup
The MAGY 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 MAGY near $47.31, the first option leg uses a $45.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAGY 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 MAGY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $45.00 | $0.73 |
MAGY cash-secured put risk and reward
- Net Premium / Debit
- +$72.50
- Max Profit (per contract)
- $72.50
- Max Loss (per contract)
- -$4,426.50
- Breakeven(s)
- $44.28
- Risk / Reward Ratio
- 0.016
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
MAGY cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on MAGY. 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% | -$4,426.50 |
| $10.47 | -77.9% | -$3,380.56 |
| $20.93 | -55.8% | -$2,334.62 |
| $31.39 | -33.7% | -$1,288.68 |
| $41.85 | -11.5% | -$242.74 |
| $52.31 | +10.6% | +$72.50 |
| $62.77 | +32.7% | +$72.50 |
| $73.23 | +54.8% | +$72.50 |
| $83.69 | +76.9% | +$72.50 |
| $94.14 | +99.0% | +$72.50 |
When traders use cash-secured put on MAGY
Cash-secured puts on MAGY earn premium while a trader waits to acquire MAGY etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning MAGY.
MAGY thesis for this cash-secured put
The market-implied 1-standard-deviation range for MAGY extends from approximately $43.40 on the downside to $51.22 on the upside. A MAGY cash-secured put lets a trader earn premium while waiting to acquire MAGY 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 MAGY IV rank near 4.65% 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 MAGY at 28.80%. As a Financial Services name, MAGY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAGY-specific events.
MAGY 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. MAGY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MAGY alongside the broader basket even when MAGY-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on MAGY carry tail risk when realized volatility exceeds the implied move; review historical MAGY earnings reactions and macro stress periods before sizing. Always rebuild the position from current MAGY chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on MAGY?
- A cash-secured put on MAGY is the cash-secured put strategy applied to MAGY (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 MAGY etf trading near $47.31, the strikes shown on this page are snapped to the nearest listed MAGY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MAGY 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 MAGY cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 28.80%), the computed maximum profit is $72.50 per contract and the computed maximum loss is -$4,426.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MAGY cash-secured put?
- The breakeven for the MAGY cash-secured put priced on this page is roughly $44.28 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 MAGY market-implied 1-standard-deviation expected move is approximately 8.26%; 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 MAGY?
- Cash-secured puts on MAGY earn premium while a trader waits to acquire MAGY etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning MAGY.
- How does current MAGY implied volatility affect this cash-secured put?
- MAGY ATM IV is at 28.80% with IV rank near 4.65%, 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.