TXS Cash-Secured Put Strategy
TXS (Texas Capital Texas Equity Index ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
TXS tracks an index composed of companies that have significant contributions to the economy of Texas. The fund adviser believes that companies headquartered in Texas enjoy certain economic, regulatory, taxation, workforce and other benefits relative to companies headquartered in other states. Initially, all eligible securities from the investable equity universe that meet certain size and liquidity requirements are selected as index constituents. Component sectors in the index are weighted based on their industry contributions to Texass GDP, as reported for the private sector by the US Bureau of Economic Analysis. Companies within each sector are then weighted based on their market-cap, with a minimum cap of 0.05% and maximum cap of 10% per constituent. The fund does not limit its investment to a certain market-cap bracket.
TXS (Texas Capital Texas Equity Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $34.1M, a beta of 0.91 versus the broader market, a 52-week range of 32.89-39.78, average daily share volume of 3K, a public-listing history dating back to 2023. These structural characteristics shape how TXS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.91 places TXS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TXS 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 TXS?
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 TXS snapshot
As of May 15, 2026, spot at $39.41, ATM IV 54.80%, expected move 15.71%. The cash-secured put on TXS 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 TXS specifically: IV rank is unavailable in the current snapshot, so regime-based timing for TXS is inferred from ATM IV at 54.80% alone, with a market-implied 1-standard-deviation move of approximately 15.71% (roughly $6.19 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 TXS expiries trade a higher absolute premium for lower per-day decay. Position sizing on TXS should anchor to the underlying notional of $39.41 per share and to the trader's directional view on TXS etf.
TXS cash-secured put setup
The TXS 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 TXS near $39.41, the first option leg uses a $37.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TXS 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 TXS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $37.00 | $1.51 |
TXS cash-secured put risk and reward
- Net Premium / Debit
- +$151.00
- Max Profit (per contract)
- $151.00
- Max Loss (per contract)
- -$3,548.00
- Breakeven(s)
- $35.49
- Risk / Reward Ratio
- 0.043
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
TXS cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on TXS. 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% | -$3,548.00 |
| $8.72 | -77.9% | -$2,676.73 |
| $17.44 | -55.8% | -$1,805.47 |
| $26.15 | -33.7% | -$934.20 |
| $34.86 | -11.5% | -$62.93 |
| $43.57 | +10.6% | +$151.00 |
| $52.29 | +32.7% | +$151.00 |
| $61.00 | +54.8% | +$151.00 |
| $69.71 | +76.9% | +$151.00 |
| $78.42 | +99.0% | +$151.00 |
When traders use cash-secured put on TXS
Cash-secured puts on TXS earn premium while a trader waits to acquire TXS etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TXS.
TXS thesis for this cash-secured put
The market-implied 1-standard-deviation range for TXS extends from approximately $33.22 on the downside to $45.60 on the upside. A TXS cash-secured put lets a trader earn premium while waiting to acquire TXS 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. As a Financial Services name, TXS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TXS-specific events.
TXS 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. TXS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TXS alongside the broader basket even when TXS-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on TXS carry tail risk when realized volatility exceeds the implied move; review historical TXS earnings reactions and macro stress periods before sizing. Always rebuild the position from current TXS chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on TXS?
- A cash-secured put on TXS is the cash-secured put strategy applied to TXS (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 TXS etf trading near $39.41, the strikes shown on this page are snapped to the nearest listed TXS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TXS 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 TXS cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 54.80%), the computed maximum profit is $151.00 per contract and the computed maximum loss is -$3,548.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TXS cash-secured put?
- The breakeven for the TXS cash-secured put priced on this page is roughly $35.49 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 TXS market-implied 1-standard-deviation expected move is approximately 15.71%; 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 TXS?
- Cash-secured puts on TXS earn premium while a trader waits to acquire TXS etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning TXS.
- How does current TXS implied volatility affect this cash-secured put?
- Current TXS ATM IV is 54.80%; IV rank context is unavailable in the current snapshot.