WTAI Cash-Secured Put Strategy
WTAI (WisdomTree Artificial Intelligence and Innovation Fund), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The index is designed to provide exposure to equity securities of exchange-listed companies globally, including developed countries and emerging markets throughout the world, which are primarily involved in the investment theme of Artificial Intelligence and Innovation. To the extent the index concentrates in the securities of a particular industry or group of industries, the fund will concentrate its investments to approximately the same extent as the index. It is non-diversified.
WTAI (WisdomTree Artificial Intelligence and Innovation Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $559.9M, a beta of 1.81 versus the broader market, a 52-week range of 21.67-41.495, average daily share volume of 118K, a public-listing history dating back to 2021. These structural characteristics shape how WTAI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.81 indicates WTAI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. WTAI 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 WTAI?
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 WTAI snapshot
As of May 15, 2026, spot at $40.55, ATM IV 31.90%, IV rank 3.91%, expected move 9.15%. The cash-secured put on WTAI 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 WTAI specifically: WTAI IV at 31.90% is on the cheap side of its 1-year range, which means a premium-selling WTAI cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.15% (roughly $3.71 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 WTAI expiries trade a higher absolute premium for lower per-day decay. Position sizing on WTAI should anchor to the underlying notional of $40.55 per share and to the trader's directional view on WTAI etf.
WTAI cash-secured put setup
The WTAI 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 WTAI near $40.55, the first option leg uses a $39.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WTAI 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 WTAI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $39.00 | $0.98 |
WTAI cash-secured put risk and reward
- Net Premium / Debit
- +$97.50
- Max Profit (per contract)
- $97.50
- Max Loss (per contract)
- -$3,801.50
- Breakeven(s)
- $38.03
- Risk / Reward Ratio
- 0.026
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
WTAI cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on WTAI. 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% | -$3,801.50 |
| $8.97 | -77.9% | -$2,905.03 |
| $17.94 | -55.8% | -$2,008.56 |
| $26.90 | -33.7% | -$1,112.08 |
| $35.87 | -11.5% | -$215.61 |
| $44.83 | +10.6% | +$97.50 |
| $53.80 | +32.7% | +$97.50 |
| $62.76 | +54.8% | +$97.50 |
| $71.73 | +76.9% | +$97.50 |
| $80.69 | +99.0% | +$97.50 |
When traders use cash-secured put on WTAI
Cash-secured puts on WTAI earn premium while a trader waits to acquire WTAI etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning WTAI.
WTAI thesis for this cash-secured put
The market-implied 1-standard-deviation range for WTAI extends from approximately $36.84 on the downside to $44.26 on the upside. A WTAI cash-secured put lets a trader earn premium while waiting to acquire WTAI 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 WTAI IV rank near 3.91% 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 WTAI at 31.90%. As a Financial Services name, WTAI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WTAI-specific events.
WTAI 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. WTAI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WTAI alongside the broader basket even when WTAI-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on WTAI carry tail risk when realized volatility exceeds the implied move; review historical WTAI earnings reactions and macro stress periods before sizing. Always rebuild the position from current WTAI chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on WTAI?
- A cash-secured put on WTAI is the cash-secured put strategy applied to WTAI (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 WTAI etf trading near $40.55, the strikes shown on this page are snapped to the nearest listed WTAI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WTAI 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 WTAI cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 31.90%), the computed maximum profit is $97.50 per contract and the computed maximum loss is -$3,801.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WTAI cash-secured put?
- The breakeven for the WTAI cash-secured put priced on this page is roughly $38.03 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 WTAI market-implied 1-standard-deviation expected move is approximately 9.15%; 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 WTAI?
- Cash-secured puts on WTAI earn premium while a trader waits to acquire WTAI etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning WTAI.
- How does current WTAI implied volatility affect this cash-secured put?
- WTAI ATM IV is at 31.90% with IV rank near 3.91%, 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.