SCHI Cash-Secured Put Strategy
SCHI (Schwab 5-10 Year Corporate Bond ETF), in the Financial Services sector, (Asset Management - Bonds industry), listed on AMEX.
The fund's goal is to track as closely as possible, before fees and expenses, the total return of an index that measures the performance of the intermediate-term U.S. corporate bond market.
SCHI (Schwab 5-10 Year Corporate Bond ETF) trades in the Financial Services sector, specifically Asset Management - Bonds, with a market capitalization of approximately $10.60B, a beta of 1.07 versus the broader market, a 52-week range of 22.08-23.278, average daily share volume of 3.0M, 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 1.07 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.
Current SCHI snapshot
As of May 15, 2026, spot at $22.46, ATM IV 51.60%, IV rank 38.67%, expected move 14.79%. The cash-secured put on SCHI 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 SCHI specifically: SCHI IV at 51.60% is mid-range versus its 1-year history, so the credit collected on a SCHI cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.79% (roughly $3.32 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 SCHI expiries trade a higher absolute premium for lower per-day decay. Position sizing on SCHI should anchor to the underlying notional of $22.46 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 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SCHI near $22.46, 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 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 SCHI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $21.00 | $0.76 |
SCHI cash-secured put risk and reward
- Net Premium / Debit
- +$76.00
- Max Profit (per contract)
- $76.00
- Max Loss (per contract)
- -$2,023.00
- Breakeven(s)
- $20.24
- Risk / Reward Ratio
- 0.038
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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$2,023.00 |
| $4.97 | -77.8% | -$1,526.51 |
| $9.94 | -55.7% | -$1,030.02 |
| $14.90 | -33.6% | -$533.52 |
| $19.87 | -11.5% | -$37.03 |
| $24.83 | +10.6% | +$76.00 |
| $29.80 | +32.7% | +$76.00 |
| $34.76 | +54.8% | +$76.00 |
| $39.73 | +76.9% | +$76.00 |
| $44.69 | +99.0% | +$76.00 |
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 $19.14 on the downside to $25.78 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 38.67% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on SCHI should anchor more to the directional view and the expected-move geometry. 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 trading near $22.46, the strikes shown on this page are snapped to the nearest listed SCHI chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 51.60%), the computed maximum profit is $76.00 per contract and the computed maximum loss is -$2,023.00 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 $20.24 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 SCHI market-implied 1-standard-deviation expected move is approximately 14.79%; 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 51.60% with IV rank near 38.67%, 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.