QDTE Cash-Secured Put Strategy
QDTE (Roundhill Investments - Innovation-100 0DTE Covered Call Strategy ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The Roundhill Innovation-100 0DTE Covered Call Strategy ETF (“QDTE”) is the first ETF to utilize zero days to expiry (“0DTE”)*** options on an innovation index (the "Innovation-100 Index" as defined in the Fund Prospectus). QDTE seeks to provide overnight exposure to the Innovation-100 Index and generate income each morning by selling out-of-the-money 0DTE calls on the Index. QDTE is an actively-managed ETF.
QDTE (Roundhill Investments - Innovation-100 0DTE Covered Call Strategy ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $836.2M, a beta of 1.23 versus the broader market, a 52-week range of 26.745-36.6, average daily share volume of 601K, a public-listing history dating back to 2024. These structural characteristics shape how QDTE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.23 places QDTE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. QDTE 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 QDTE?
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 QDTE snapshot
As of May 15, 2026, spot at $31.27, ATM IV 14.20%, IV rank 2.74%, expected move 4.07%. The cash-secured put on QDTE 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 63-day expiry.
Why this cash-secured put structure on QDTE specifically: QDTE IV at 14.20% is on the cheap side of its 1-year range, which means a premium-selling QDTE cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 4.07% (roughly $1.27 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated QDTE expiries trade a higher absolute premium for lower per-day decay. Position sizing on QDTE should anchor to the underlying notional of $31.27 per share and to the trader's directional view on QDTE etf.
QDTE cash-secured put setup
The QDTE 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 QDTE near $31.27, the first option leg uses a $30.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QDTE chain at a 63-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 QDTE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $30.00 | $2.18 |
QDTE cash-secured put risk and reward
- Net Premium / Debit
- +$217.50
- Max Profit (per contract)
- $217.50
- Max Loss (per contract)
- -$2,781.50
- Breakeven(s)
- $27.83
- Risk / Reward Ratio
- 0.078
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
QDTE cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on QDTE. 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% | -$2,781.50 |
| $6.92 | -77.9% | -$2,090.21 |
| $13.84 | -55.8% | -$1,398.93 |
| $20.75 | -33.6% | -$707.64 |
| $27.66 | -11.5% | -$16.35 |
| $34.57 | +10.6% | +$217.50 |
| $41.49 | +32.7% | +$217.50 |
| $48.40 | +54.8% | +$217.50 |
| $55.31 | +76.9% | +$217.50 |
| $62.23 | +99.0% | +$217.50 |
When traders use cash-secured put on QDTE
Cash-secured puts on QDTE earn premium while a trader waits to acquire QDTE etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning QDTE.
QDTE thesis for this cash-secured put
The market-implied 1-standard-deviation range for QDTE extends from approximately $30.00 on the downside to $32.54 on the upside. A QDTE cash-secured put lets a trader earn premium while waiting to acquire QDTE 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 QDTE IV rank near 2.74% 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 QDTE at 14.20%. As a Financial Services name, QDTE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QDTE-specific events.
QDTE 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. QDTE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move QDTE alongside the broader basket even when QDTE-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on QDTE carry tail risk when realized volatility exceeds the implied move; review historical QDTE earnings reactions and macro stress periods before sizing. Always rebuild the position from current QDTE chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on QDTE?
- A cash-secured put on QDTE is the cash-secured put strategy applied to QDTE (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 QDTE etf trading near $31.27, the strikes shown on this page are snapped to the nearest listed QDTE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are QDTE 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 QDTE cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 14.20%), the computed maximum profit is $217.50 per contract and the computed maximum loss is -$2,781.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a QDTE cash-secured put?
- The breakeven for the QDTE cash-secured put priced on this page is roughly $27.83 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 QDTE market-implied 1-standard-deviation expected move is approximately 4.07%; 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 QDTE?
- Cash-secured puts on QDTE earn premium while a trader waits to acquire QDTE etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning QDTE.
- How does current QDTE implied volatility affect this cash-secured put?
- QDTE ATM IV is at 14.20% with IV rank near 2.74%, 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.