How are MSOS 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 MSOS cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 89.63%), the computed maximum profit is $11.50 per contract and the computed maximum loss is -$437.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

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

The breakeven for the MSOS cash-secured put priced on this page is roughly $4.39 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 MSOS market-implied 1-standard-deviation expected move is approximately 25.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

MSOS ATM IV is at 89.63% with IV rank near 35.91%, 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.

MSOS Cash-Secured Put Strategy

MSOS (AdvisorShares Pure US Cannabis ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

MSOS is the groundbreaking actively managed ETF, listed in the U.S., providing focused exposure exclusively to American cannabis companies, including multi-state operators. The fund's portfolio strategically allocates capital across a wide array of U.S.-based cannabis-related businesses. Offering seamless access, MSOS trades on the NYSE Arca, enabling investors to gain exposure to numerous U.S. cannabis securities through a single, convenient trade. Directly investing in individual U.S. cannabis firms often necessitates sourcing them on smaller, foreign exchanges. The ETF benefits from a portfolio manager with profound capital markets experience and established expertise in navigating highly-regulated equity sectors, notably cannabis. All MSOS assets are securely held by BNY Mellon, one of the largest U.S. custodial banks.

MSOS (AdvisorShares Pure US Cannabis ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $609.1M, a beta of 0.82 versus the broader market, a 52-week range of 2.22-7.25, average daily share volume of 9.2M, a public-listing history dating back to 2020. These structural characteristics shape how MSOS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.82 places MSOS 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 MSOS?

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 MSOS snapshot

As of June 30, 2026, spot at $4.95, ATM IV 89.63%, IV rank 35.91%, expected move 25.70%. The cash-secured put on MSOS 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 17-day expiry.

Why this cash-secured put structure on MSOS specifically: MSOS IV at 89.63% is mid-range versus its 1-year history, so the credit collected on a MSOS cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 25.70% (roughly $1.27 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MSOS expiries trade a higher absolute premium for lower per-day decay. Position sizing on MSOS should anchor to the underlying notional of $4.95 per share and to the trader's directional view on MSOS etf.

MSOS cash-secured put setup

The MSOS 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 MSOS near $4.95, the first option leg uses a $4.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MSOS chain at a 17-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 MSOS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$4.50	$0.12

MSOS cash-secured put risk and reward

Net Premium / Debit: +$11.50
Max Profit (per contract): $11.50
Max Loss (per contract): -$437.50
Breakeven(s): $4.39
Risk / Reward Ratio: 0.026

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

MSOS cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on MSOS. 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	-99.8%	-$437.50
$1.10	-77.7%	-$328.16
$2.20	-55.6%	-$218.83
$3.29	-33.5%	-$109.49
$4.38	-11.4%	-$0.15
$5.48	+10.6%	+$11.50
$6.57	+32.7%	+$11.50
$7.66	+54.8%	+$11.50
$8.76	+76.9%	+$11.50
$9.85	+99.0%	+$11.50

When traders use cash-secured put on MSOS

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

MSOS thesis for this cash-secured put

The market-implied 1-standard-deviation range for MSOS extends from approximately $3.68 on the downside to $6.22 on the upside. A MSOS cash-secured put lets a trader earn premium while waiting to acquire MSOS 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 MSOS IV rank near 35.91% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on MSOS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, MSOS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MSOS-specific events.

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

Frequently asked questions

What is a cash-secured put on MSOS?: A cash-secured put on MSOS is the cash-secured put strategy applied to MSOS (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 MSOS etf trading near $4.95, the strikes shown on this page are snapped to the nearest listed MSOS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MSOS 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 MSOS cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 89.63%), the computed maximum profit is $11.50 per contract and the computed maximum loss is -$437.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MSOS cash-secured put?: The breakeven for the MSOS cash-secured put priced on this page is roughly $4.39 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 MSOS market-implied 1-standard-deviation expected move is approximately 25.70%; 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 MSOS?: Cash-secured puts on MSOS earn premium while a trader waits to acquire MSOS etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning MSOS.
How does current MSOS implied volatility affect this cash-secured put?: MSOS ATM IV is at 89.63% with IV rank near 35.91%, 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.