TSMY Cash-Secured Put Strategy

TSMY (YieldMax TSM Option Income Strategy ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The YieldMax TSM Option Income Strategy ETF (TSMY) is an actively managed exchange-traded fund that seeks to generate weekly income by selling call options or call spreads on TSM. The strategy is designed to capture option premiums while providing participation in the share price appreciation of TSM.

TSMY (YieldMax TSM Option Income Strategy ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $66.6M, a beta of 1.05 versus the broader market, a 52-week range of 14.303-17.96, average daily share volume of 206K, a public-listing history dating back to 2024. These structural characteristics shape how TSMY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.05 places TSMY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TSMY 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 TSMY?

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 TSMY snapshot

As of May 15, 2026, spot at $16.55, ATM IV 11.90%, IV rank 0.81%, expected move 3.41%. The cash-secured put on TSMY 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 TSMY specifically: TSMY IV at 11.90% is on the cheap side of its 1-year range, which means a premium-selling TSMY cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 3.41% (roughly $0.56 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 TSMY expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSMY should anchor to the underlying notional of $16.55 per share and to the trader's directional view on TSMY etf.

TSMY cash-secured put setup

The TSMY 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 TSMY near $16.55, the first option leg uses a $15.72 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSMY 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 TSMY shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$15.72N/A

TSMY cash-secured put risk and reward

Net Premium / Debit
N/A
Max Profit (per contract)
Unbounded
Max Loss (per contract)
Unbounded
Breakeven(s)
None on modeled curve
Risk / Reward Ratio
N/A

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

TSMY cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on TSMY. 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.

When traders use cash-secured put on TSMY

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

TSMY thesis for this cash-secured put

The market-implied 1-standard-deviation range for TSMY extends from approximately $15.99 on the downside to $17.11 on the upside. A TSMY cash-secured put lets a trader earn premium while waiting to acquire TSMY 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 TSMY IV rank near 0.81% 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 TSMY at 11.90%. As a Financial Services name, TSMY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSMY-specific events.

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

Frequently asked questions

What is a cash-secured put on TSMY?
A cash-secured put on TSMY is the cash-secured put strategy applied to TSMY (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 TSMY etf trading near $16.55, the strikes shown on this page are snapped to the nearest listed TSMY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TSMY 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 TSMY cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 11.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TSMY cash-secured put?
The breakeven for the TSMY cash-secured put priced on this page is no defined breakeven on the modeled curve 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 TSMY market-implied 1-standard-deviation expected move is approximately 3.41%; 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 TSMY?
Cash-secured puts on TSMY earn premium while a trader waits to acquire TSMY etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TSMY.
How does current TSMY implied volatility affect this cash-secured put?
TSMY ATM IV is at 11.90% with IV rank near 0.81%, 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.

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