How are USHY 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 USHY cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 213.40%), the computed maximum profit is $2.00 per contract and the computed maximum loss is -$3,497.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a USHY cash-secured put?

The breakeven for the USHY cash-secured put priced on this page is roughly $35.16 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The USHY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 1.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current USHY implied volatility affect this cash-secured put?

USHY ATM IV is at 213.40% with IV rank near 42.59%, 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.

USHY Cash-Secured Put Strategy

USHY (iShares Broad USD High Yield Corporate Bond ETF), in the Financial Services sector, (Asset Management - Bonds industry), listed on CBOE.

This fund aims to replicate the financial performance of an underlying index. This benchmark is composed of corporate debt instruments that offer high yields and are denominated in U.S. dollars.

USHY (iShares Broad USD High Yield Corporate Bond ETF) trades in the Financial Services sector, specifically Asset Management - Bonds, with a market capitalization of approximately $28.64B, a beta of 0.64 versus the broader market, a 52-week range of 36.39-37.867, average daily share volume of 12.9M, a public-listing history dating back to 2017. These structural characteristics shape how USHY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.64 indicates USHY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. USHY 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 USHY?

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.

USHY snapshot

As of August 14, 2026, spot at $36.86, ATM IV 213.40%, IV rank 42.59%, expected move 1.08%. The cash-secured put on USHY below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this cash-secured put structure on USHY specifically: USHY IV at 213.40% is mid-range versus its 1-year history, so the credit collected on a USHY cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 1.08% (roughly $0.40 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated USHY expiries trade a higher absolute premium for lower per-day decay. Position sizing on USHY should anchor to the underlying notional of $36.86 per share and to the trader's directional view on USHY etf.

USHY cash-secured put setup

The USHY cash-secured put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With USHY at $36.86 on that close, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed USHY chain at a 35-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 USHY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$35.00	$0.02

USHY cash-secured put risk and reward

Net Premium / Debit: +$2.00
Max Profit (per contract): $2.00
Max Loss (per contract): -$3,497.00
Breakeven(s): $35.16
Risk / Reward Ratio: 0.001

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

USHY cash-secured put payoff curve

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

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$3,497.00
$8.16	-77.9%	-$2,682.12
$16.31	-55.8%	-$1,867.23
$24.46	-33.7%	-$1,052.35
$32.61	-11.5%	-$237.46
$40.75	+10.6%	+$2.00
$48.90	+32.7%	+$2.00
$57.05	+54.8%	+$2.00
$65.20	+76.9%	+$2.00
$73.35	+99.0%	+$2.00

When traders use cash-secured put on USHY

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

USHY thesis for this cash-secured put

The market-implied 1-standard-deviation range for USHY extends from approximately $36.46 on the downside to $37.26 on the upside. A USHY cash-secured put lets a trader earn premium while waiting to acquire USHY 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 USHY IV rank near 42.59% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on USHY should anchor more to the directional view and the expected-move geometry. As a Financial Services name, USHY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to USHY-specific events.

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

Frequently asked questions

What is a cash-secured put on USHY?: A cash-secured put on USHY is the cash-secured put strategy applied to USHY (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 USHY etf at $36.86 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed USHY chain strike and the premiums come straight from that session's bid/ask midpoint.
How are USHY 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 USHY cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 213.40%), the computed maximum profit is $2.00 per contract and the computed maximum loss is -$3,497.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a USHY cash-secured put?: The breakeven for the USHY cash-secured put priced on this page is roughly $35.16 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The USHY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 1.08%; 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 USHY?: Cash-secured puts on USHY earn premium while a trader waits to acquire USHY etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning USHY.
How does current USHY implied volatility affect this cash-secured put?: USHY ATM IV is at 213.40% with IV rank near 42.59%, 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.