SGDJ Cash-Secured Put Strategy
SGDJ (Sprott Junior Gold Miners ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund will invest at least 90% of its net assets in securities that comprise the underlying index. The underlying index aims to track the performance of "junior" gold companies primarily located in the U.S., Canada and Australia whose common stock, American Depositary Receipts ("ADRs") or Global Depositary Receipts ("GDRs") are traded on a regulated stock exchange in the form of shares tradeable for foreign investors without any restrictions. It is non-diversified.
SGDJ (Sprott Junior Gold Miners ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $329.2M, a beta of 1.04 versus the broader market, a 52-week range of 42.8-115.775, average daily share volume of 82K, a public-listing history dating back to 2015. These structural characteristics shape how SGDJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.04 places SGDJ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SGDJ 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 SGDJ?
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 SGDJ snapshot
As of May 15, 2026, spot at $90.66, ATM IV 49.20%, IV rank 50.88%, expected move 14.11%. The cash-secured put on SGDJ 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 SGDJ specifically: SGDJ IV at 49.20% is mid-range versus its 1-year history, so the credit collected on a SGDJ cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 14.11% (roughly $12.79 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 SGDJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on SGDJ should anchor to the underlying notional of $90.66 per share and to the trader's directional view on SGDJ etf.
SGDJ cash-secured put setup
The SGDJ 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 SGDJ near $90.66, the first option leg uses a $86.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SGDJ 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 SGDJ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $86.00 | $3.48 |
SGDJ cash-secured put risk and reward
- Net Premium / Debit
- +$347.50
- Max Profit (per contract)
- $347.50
- Max Loss (per contract)
- -$8,251.50
- Breakeven(s)
- $82.53
- Risk / Reward Ratio
- 0.042
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
SGDJ cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on SGDJ. 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% | -$8,251.50 |
| $20.05 | -77.9% | -$6,247.07 |
| $40.10 | -55.8% | -$4,242.64 |
| $60.14 | -33.7% | -$2,238.20 |
| $80.19 | -11.6% | -$233.77 |
| $100.23 | +10.6% | +$347.50 |
| $120.28 | +32.7% | +$347.50 |
| $140.32 | +54.8% | +$347.50 |
| $160.36 | +76.9% | +$347.50 |
| $180.41 | +99.0% | +$347.50 |
When traders use cash-secured put on SGDJ
Cash-secured puts on SGDJ earn premium while a trader waits to acquire SGDJ etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SGDJ.
SGDJ thesis for this cash-secured put
The market-implied 1-standard-deviation range for SGDJ extends from approximately $77.87 on the downside to $103.45 on the upside. A SGDJ cash-secured put lets a trader earn premium while waiting to acquire SGDJ 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 SGDJ IV rank near 50.88% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on SGDJ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, SGDJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SGDJ-specific events.
SGDJ 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. SGDJ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SGDJ alongside the broader basket even when SGDJ-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on SGDJ carry tail risk when realized volatility exceeds the implied move; review historical SGDJ earnings reactions and macro stress periods before sizing. Always rebuild the position from current SGDJ chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on SGDJ?
- A cash-secured put on SGDJ is the cash-secured put strategy applied to SGDJ (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 SGDJ etf trading near $90.66, the strikes shown on this page are snapped to the nearest listed SGDJ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SGDJ 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 SGDJ cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 49.20%), the computed maximum profit is $347.50 per contract and the computed maximum loss is -$8,251.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SGDJ cash-secured put?
- The breakeven for the SGDJ cash-secured put priced on this page is roughly $82.53 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 SGDJ market-implied 1-standard-deviation expected move is approximately 14.11%; 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 SGDJ?
- Cash-secured puts on SGDJ earn premium while a trader waits to acquire SGDJ etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SGDJ.
- How does current SGDJ implied volatility affect this cash-secured put?
- SGDJ ATM IV is at 49.20% with IV rank near 50.88%, 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.