How are SCHI 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 SCHI cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 450.00%), the computed maximum profit is $19.00 per contract and the computed maximum loss is -$2,080.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

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

The breakeven for the SCHI cash-secured put priced on this page is roughly $20.81 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 SCHI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 129.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

SCHI ATM IV is at 450.00% with IV rank near 99.98%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

SCHI Cash-Secured Put Strategy

SCHI (Schwab 5-10 Year Corporate Bond ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

To pursue its goal, the fund generally invests in securities that are included in the index. The index measures the performance of U.S. investment grade, taxable corporate bonds with maturities greater than or equal to five years and less than ten years that have $300 million or more of outstanding face value. It is the fund's policy that under normal circumstances it will invest at least 90% of its net assets in securities included in the index.

SCHI (Schwab 5-10 Year Corporate Bond ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $11.59B, a beta of 1.06 versus the broader market, a 52-week range of 22.19-23.278, average daily share volume of 2.7M, a public-listing history dating back to 2019. These structural characteristics shape how SCHI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.06 places SCHI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SCHI 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 SCHI?

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.

SCHI snapshot

As of August 14, 2026, spot at $22.24, ATM IV 450.00%, IV rank 99.98%, expected move 129.01%. The cash-secured put on SCHI 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 SCHI specifically: SCHI IV at 450.00% is rich versus its 1-year range, which favors premium-selling structures like a SCHI cash-secured put, with a market-implied 1-standard-deviation move of approximately 129.01% (roughly $28.69 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 SCHI expiries trade a higher absolute premium for lower per-day decay. Position sizing on SCHI should anchor to the underlying notional of $22.24 per share and to the trader's directional view on SCHI etf.

SCHI cash-secured put setup

The SCHI 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 SCHI at $22.24 on that close, the first option leg uses a $21.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SCHI 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 SCHI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$21.00	$0.19

SCHI cash-secured put risk and reward

Net Premium / Debit: +$19.00
Max Profit (per contract): $19.00
Max Loss (per contract): -$2,080.00
Breakeven(s): $20.81
Risk / Reward Ratio: 0.009

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

SCHI cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on SCHI. 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%	-$2,080.00
$4.93	-77.8%	-$1,588.37
$9.84	-55.7%	-$1,096.74
$14.76	-33.6%	-$605.12
$19.68	-11.5%	-$113.49
$24.59	+10.6%	+$19.00
$29.51	+32.7%	+$19.00
$34.42	+54.8%	+$19.00
$39.34	+76.9%	+$19.00
$44.26	+99.0%	+$19.00

When traders use cash-secured put on SCHI

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

SCHI thesis for this cash-secured put

The market-implied 1-standard-deviation range for SCHI extends from approximately $-6.45 on the downside to $50.93 on the upside. A SCHI cash-secured put lets a trader earn premium while waiting to acquire SCHI 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 SCHI IV rank near 99.98% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on SCHI at 450.00%. As a Financial Services name, SCHI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SCHI-specific events.

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

Frequently asked questions

What is a cash-secured put on SCHI?: A cash-secured put on SCHI is the cash-secured put strategy applied to SCHI (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 SCHI etf at $22.24 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SCHI chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SCHI 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 SCHI cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 450.00%), the computed maximum profit is $19.00 per contract and the computed maximum loss is -$2,080.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SCHI cash-secured put?: The breakeven for the SCHI cash-secured put priced on this page is roughly $20.81 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 SCHI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 129.01%; 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 SCHI?: Cash-secured puts on SCHI earn premium while a trader waits to acquire SCHI etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SCHI.
How does current SCHI implied volatility affect this cash-secured put?: SCHI ATM IV is at 450.00% with IV rank near 99.98%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.