How are PSI 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 PSI cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.50%), the computed maximum profit is $500.00 per contract and the computed maximum loss is -$13,999.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

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

The breakeven for the PSI cash-secured put priced on this page is roughly $140.00 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 PSI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

PSI ATM IV is at 42.50% with IV rank near 37.92%, 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.

PSI Cash-Secured Put Strategy

PSI (Invesco Semiconductors ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The Invesco Semiconductors ETF (referred to as "the Fund") is designed to mirror the performance of the Dynamic Semiconductor Intellidex Index. Typically, the Fund allocates a minimum of 90% of its total assets to the common equity securities included within this Index. The Index itself aims for capital appreciation, achieved through a rigorous evaluation of companies based on key investment criteria. These include their price momentum, earnings momentum, overall quality, management efficacy, and intrinsic value. It is composed of common stocks from 30 U.S.-based companies, all primarily focused on semiconductor manufacturing. Both the Fund and its underlying Index undergo rebalancing and reconstitution on a quarterly schedule, specifically in February, May, August, and November.

PSI (Invesco Semiconductors ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.54B, a beta of 2.26 versus the broader market, a 52-week range of 58.62-189.24, average daily share volume of 428K, a public-listing history dating back to 2005. These structural characteristics shape how PSI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.26 indicates PSI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. PSI 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 PSI?

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.

PSI snapshot

As of August 14, 2026, spot at $152.15, ATM IV 42.50%, IV rank 37.92%, expected move 12.18%. The cash-secured put on PSI 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 PSI specifically: PSI IV at 42.50% is mid-range versus its 1-year history, so the credit collected on a PSI cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 12.18% (roughly $18.54 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 PSI expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSI should anchor to the underlying notional of $152.15 per share and to the trader's directional view on PSI etf.

PSI cash-secured put setup

The PSI 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 PSI at $152.15 on that close, the first option leg uses a $145.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PSI 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 PSI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$145.00	$5.00

PSI cash-secured put risk and reward

Net Premium / Debit: +$500.00
Max Profit (per contract): $500.00
Max Loss (per contract): -$13,999.00
Breakeven(s): $140.00
Risk / Reward Ratio: 0.036

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

PSI cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on PSI. 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%	-$13,999.00
$33.65	-77.9%	-$10,634.99
$67.29	-55.8%	-$7,270.98
$100.93	-33.7%	-$3,906.97
$134.57	-11.6%	-$542.96
$168.21	+10.6%	+$500.00
$201.85	+32.7%	+$500.00
$235.49	+54.8%	+$500.00
$269.13	+76.9%	+$500.00
$302.77	+99.0%	+$500.00

When traders use cash-secured put on PSI

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

PSI thesis for this cash-secured put

The market-implied 1-standard-deviation range for PSI extends from approximately $133.61 on the downside to $170.69 on the upside. A PSI cash-secured put lets a trader earn premium while waiting to acquire PSI 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 PSI IV rank near 37.92% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on PSI should anchor more to the directional view and the expected-move geometry. As a Financial Services name, PSI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PSI-specific events.

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

Frequently asked questions

What is a cash-secured put on PSI?: A cash-secured put on PSI is the cash-secured put strategy applied to PSI (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 PSI etf at $152.15 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PSI chain strike and the premiums come straight from that session's bid/ask midpoint.
How are PSI 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 PSI cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.50%), the computed maximum profit is $500.00 per contract and the computed maximum loss is -$13,999.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PSI cash-secured put?: The breakeven for the PSI cash-secured put priced on this page is roughly $140.00 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 PSI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.18%; 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 PSI?: Cash-secured puts on PSI earn premium while a trader waits to acquire PSI etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PSI.
How does current PSI implied volatility affect this cash-secured put?: PSI ATM IV is at 42.50% with IV rank near 37.92%, 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.