NFLU Cash-Secured Put Strategy
NFLU (T-REX 2X Long NFLX Daily Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The fund, under normal circumstances, invests in swap agreements that provide 200% daily exposure to NFLX equal to at least 80% of its net assets (plus any borrowings for investment purposes). It may also seek to achieve its investment objective by purchasing call options on NFLX or by investing directly in the common stock of NFLX. The fund is non-diversified.
NFLU (T-REX 2X Long NFLX Daily Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $10.9M, a beta of 0.64 versus the broader market, a 52-week range of 20.17-74.49, average daily share volume of 255K, a public-listing history dating back to 2024. These structural characteristics shape how NFLU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.64 indicates NFLU has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a cash-secured put on NFLU?
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 NFLU snapshot
As of May 15, 2026, spot at $25.09, ATM IV 59.60%, IV rank 19.24%, expected move 17.09%. The cash-secured put on NFLU 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 NFLU specifically: NFLU IV at 59.60% is on the cheap side of its 1-year range, which means a premium-selling NFLU cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 17.09% (roughly $4.29 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 NFLU expiries trade a higher absolute premium for lower per-day decay. Position sizing on NFLU should anchor to the underlying notional of $25.09 per share and to the trader's directional view on NFLU etf.
NFLU cash-secured put setup
The NFLU 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 NFLU near $25.09, 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 NFLU 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 NFLU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $24.00 | $1.23 |
NFLU cash-secured put risk and reward
- Net Premium / Debit
- +$122.50
- Max Profit (per contract)
- $122.50
- Max Loss (per contract)
- -$2,276.50
- Breakeven(s)
- $22.78
- Risk / Reward Ratio
- 0.054
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
NFLU cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on NFLU. 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% | -$2,276.50 |
| $5.56 | -77.9% | -$1,721.86 |
| $11.10 | -55.7% | -$1,167.21 |
| $16.65 | -33.6% | -$612.57 |
| $22.20 | -11.5% | -$57.93 |
| $27.74 | +10.6% | +$122.50 |
| $33.29 | +32.7% | +$122.50 |
| $38.84 | +54.8% | +$122.50 |
| $44.38 | +76.9% | +$122.50 |
| $49.93 | +99.0% | +$122.50 |
When traders use cash-secured put on NFLU
Cash-secured puts on NFLU earn premium while a trader waits to acquire NFLU etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NFLU.
NFLU thesis for this cash-secured put
The market-implied 1-standard-deviation range for NFLU extends from approximately $20.80 on the downside to $29.38 on the upside. A NFLU cash-secured put lets a trader earn premium while waiting to acquire NFLU 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 NFLU IV rank near 19.24% 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 NFLU at 59.60%. As a Financial Services name, NFLU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NFLU-specific events.
NFLU 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. NFLU positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NFLU alongside the broader basket even when NFLU-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on NFLU carry tail risk when realized volatility exceeds the implied move; review historical NFLU earnings reactions and macro stress periods before sizing. Always rebuild the position from current NFLU chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on NFLU?
- A cash-secured put on NFLU is the cash-secured put strategy applied to NFLU (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 NFLU etf trading near $25.09, the strikes shown on this page are snapped to the nearest listed NFLU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NFLU 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 NFLU cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 59.60%), the computed maximum profit is $122.50 per contract and the computed maximum loss is -$2,276.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NFLU cash-secured put?
- The breakeven for the NFLU cash-secured put priced on this page is roughly $22.78 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 NFLU market-implied 1-standard-deviation expected move is approximately 17.09%; 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 NFLU?
- Cash-secured puts on NFLU earn premium while a trader waits to acquire NFLU etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning NFLU.
- How does current NFLU implied volatility affect this cash-secured put?
- NFLU ATM IV is at 59.60% with IV rank near 19.24%, 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.