How are RDIV 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 RDIV cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 38.40%), the computed maximum profit is $79.00 per contract and the computed maximum loss is -$5,520.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

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

The breakeven for the RDIV cash-secured put priced on this page is roughly $55.21 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 RDIV market-implied 1-standard-deviation expected move is approximately 11.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

RDIV ATM IV is at 38.40% with IV rank near 26.04%, 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.

RDIV Cash-Secured Put Strategy

RDIV (Invesco S&P Ultra Dividend Revenue ETF), in the Financial Services sector, (Asset Management - Income industry), listed on AMEX.

The Invesco S&P Ultra Dividend Revenue ETF aims to mirror the performance of the S&P 900 Dividend Revenue-Weighted Index. This involves allocating a minimum of 90% of its total capital to the securities that constitute this benchmark index. The underlying Index employs a systematic, rules-based approach originating from the broader S&P 900 Index. This process first filters out the highest 5% of securities based on dividend yield. Subsequently, it removes the 5% of securities with the highest dividend payout ratios from each specific sector. From the remaining pool, the sixty securities exhibiting the highest dividend yields are chosen.

RDIV (Invesco S&P Ultra Dividend Revenue ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $1.09B, a beta of 0.81 versus the broader market, a 52-week range of 47.28-60.14, average daily share volume of 75K, a public-listing history dating back to 2013. These structural characteristics shape how RDIV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.81 places RDIV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RDIV 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 RDIV?

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 RDIV snapshot

As of June 29, 2026, spot at $59.00, ATM IV 38.40%, IV rank 26.04%, expected move 11.01%. The cash-secured put on RDIV 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 18-day expiry.

Why this cash-secured put structure on RDIV specifically: RDIV IV at 38.40% is on the cheap side of its 1-year range, which means a premium-selling RDIV cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 11.01% (roughly $6.50 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RDIV expiries trade a higher absolute premium for lower per-day decay. Position sizing on RDIV should anchor to the underlying notional of $59.00 per share and to the trader's directional view on RDIV etf.

RDIV cash-secured put setup

The RDIV 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 RDIV near $59.00, the first option leg uses a $56.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RDIV chain at a 18-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 RDIV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$56.00	$0.79

RDIV cash-secured put risk and reward

Net Premium / Debit: +$79.00
Max Profit (per contract): $79.00
Max Loss (per contract): -$5,520.00
Breakeven(s): $55.21
Risk / Reward Ratio: 0.014

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

RDIV cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on RDIV. 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%	-$5,520.00
$13.05	-77.9%	-$4,215.59
$26.10	-55.8%	-$2,911.18
$39.14	-33.7%	-$1,606.76
$52.19	-11.5%	-$302.35
$65.23	+10.6%	+$79.00
$78.27	+32.7%	+$79.00
$91.32	+54.8%	+$79.00
$104.36	+76.9%	+$79.00
$117.41	+99.0%	+$79.00

When traders use cash-secured put on RDIV

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

RDIV thesis for this cash-secured put

The market-implied 1-standard-deviation range for RDIV extends from approximately $52.50 on the downside to $65.50 on the upside. A RDIV cash-secured put lets a trader earn premium while waiting to acquire RDIV 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 RDIV IV rank near 26.04% 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 RDIV at 38.40%. As a Financial Services name, RDIV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RDIV-specific events.

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

Frequently asked questions

What is a cash-secured put on RDIV?: A cash-secured put on RDIV is the cash-secured put strategy applied to RDIV (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 RDIV etf trading near $59.00, the strikes shown on this page are snapped to the nearest listed RDIV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RDIV 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 RDIV cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 38.40%), the computed maximum profit is $79.00 per contract and the computed maximum loss is -$5,520.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RDIV cash-secured put?: The breakeven for the RDIV cash-secured put priced on this page is roughly $55.21 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 RDIV market-implied 1-standard-deviation expected move is approximately 11.01%; 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 RDIV?: Cash-secured puts on RDIV earn premium while a trader waits to acquire RDIV etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning RDIV.
How does current RDIV implied volatility affect this cash-secured put?: RDIV ATM IV is at 38.40% with IV rank near 26.04%, 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.