TMFC Long Put Strategy
TMFC (Motley Fool 100 Index ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
Under normal circumstances, at least 80% of the fund's total assets (exclusive of any collateral held from securities lending) will be invested in the component securities of the index. The index was established by TMF in 2017 and is a proprietary, rules-based index designed to track the performance of the 100 largest, most liquid U.S. companies that have been recommended by TMF’s analysts and newsletters. The fund is non-diversified.
TMFC (Motley Fool 100 Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.01B, a beta of 1.10 versus the broader market, a 52-week range of 59.5-77.575, average daily share volume of 102K, a public-listing history dating back to 2018. These structural characteristics shape how TMFC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.10 places TMFC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TMFC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on TMFC?
A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.
Current TMFC snapshot
As of May 15, 2026, spot at $77.30, ATM IV 22.30%, IV rank 35.53%, expected move 6.39%. The long put on TMFC 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 154-day expiry.
Why this long put structure on TMFC specifically: TMFC IV at 22.30% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 6.39% (roughly $4.94 on the underlying). The 154-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TMFC expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMFC should anchor to the underlying notional of $77.30 per share and to the trader's directional view on TMFC etf.
TMFC long put setup
The TMFC long 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 TMFC near $77.30, the first option leg uses a $77.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMFC chain at a 154-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 TMFC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $77.00 | $4.05 |
TMFC long put risk and reward
- Net Premium / Debit
- -$405.00
- Max Profit (per contract)
- $7,294.00
- Max Loss (per contract)
- -$405.00
- Breakeven(s)
- $72.95
- Risk / Reward Ratio
- 18.010
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
TMFC long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on TMFC. 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% | +$7,294.00 |
| $17.10 | -77.9% | +$5,584.96 |
| $34.19 | -55.8% | +$3,875.93 |
| $51.28 | -33.7% | +$2,166.89 |
| $68.37 | -11.6% | +$457.86 |
| $85.46 | +10.6% | -$405.00 |
| $102.55 | +32.7% | -$405.00 |
| $119.64 | +54.8% | -$405.00 |
| $136.73 | +76.9% | -$405.00 |
| $153.82 | +99.0% | -$405.00 |
When traders use long put on TMFC
Long puts on TMFC hedge an existing long TMFC etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying TMFC exposure being hedged.
TMFC thesis for this long put
The market-implied 1-standard-deviation range for TMFC extends from approximately $72.36 on the downside to $82.24 on the upside. A TMFC long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long TMFC position with one put per 100 shares held. Current TMFC IV rank near 35.53% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on TMFC should anchor more to the directional view and the expected-move geometry. As a Financial Services name, TMFC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMFC-specific events.
TMFC long put positions are structurally bearish; 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. TMFC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TMFC alongside the broader basket even when TMFC-specific fundamentals are unchanged. Long-premium structures like a long put on TMFC are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current TMFC chain quotes before placing a trade.
Frequently asked questions
- What is a long put on TMFC?
- A long put on TMFC is the long put strategy applied to TMFC (etf). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. With TMFC etf trading near $77.30, the strikes shown on this page are snapped to the nearest listed TMFC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TMFC long put max profit and max loss calculated?
- Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the TMFC long put priced from the end-of-day chain at a 30-day expiry (ATM IV 22.30%), the computed maximum profit is $7,294.00 per contract and the computed maximum loss is -$405.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TMFC long put?
- The breakeven for the TMFC long put priced on this page is roughly $72.95 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 TMFC market-implied 1-standard-deviation expected move is approximately 6.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long put on TMFC?
- Long puts on TMFC hedge an existing long TMFC etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying TMFC exposure being hedged.
- How does current TMFC implied volatility affect this long put?
- TMFC ATM IV is at 22.30% with IV rank near 35.53%, 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.