How are WTMF 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 WTMF cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 69.30%), the computed maximum profit is $35.00 per contract and the computed maximum loss is -$3,864.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

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

The breakeven for the WTMF cash-secured put priced on this page is roughly $38.65 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 WTMF market-implied 1-standard-deviation expected move is approximately 19.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

WTMF ATM IV is at 69.30% with IV rank near 48.05%, 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.

WTMF Cash-Secured Put Strategy

WTMF (WisdomTree Managed Futures Strategy Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.

This actively managed exchange-traded fund (ETF) primarily directs at least 80% of its net assets, including any funds borrowed for investment purposes, into "managed futures." Its objective is to generate favorable absolute returns in various market conditions, including periods of growth or decline, with performance largely independent of conventional equity or fixed-income market fluctuations. The fund utilizes a non-diversified investment strategy.

WTMF (WisdomTree Managed Futures Strategy Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $235.8M, a beta of 0.28 versus the broader market, a 52-week range of 34.89-41.55, average daily share volume of 27K, a public-listing history dating back to 2011. These structural characteristics shape how WTMF etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.28 indicates WTMF has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. WTMF 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 WTMF?

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 WTMF snapshot

As of June 30, 2026, spot at $40.74, ATM IV 69.30%, IV rank 48.05%, expected move 19.87%. The cash-secured put on WTMF 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 17-day expiry.

Why this cash-secured put structure on WTMF specifically: WTMF IV at 69.30% is mid-range versus its 1-year history, so the credit collected on a WTMF cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 19.87% (roughly $8.09 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WTMF expiries trade a higher absolute premium for lower per-day decay. Position sizing on WTMF should anchor to the underlying notional of $40.74 per share and to the trader's directional view on WTMF etf.

WTMF cash-secured put setup

The WTMF 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 WTMF near $40.74, 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 WTMF chain at a 17-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 WTMF shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$39.00	$0.35

WTMF cash-secured put risk and reward

Net Premium / Debit: +$35.00
Max Profit (per contract): $35.00
Max Loss (per contract): -$3,864.00
Breakeven(s): $38.65
Risk / Reward Ratio: 0.009

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

WTMF cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on WTMF. 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%	-$3,864.00
$9.02	-77.9%	-$2,963.33
$18.02	-55.8%	-$2,062.65
$27.03	-33.7%	-$1,161.98
$36.04	-11.5%	-$261.31
$45.04	+10.6%	+$35.00
$54.05	+32.7%	+$35.00
$63.06	+54.8%	+$35.00
$72.06	+76.9%	+$35.00
$81.07	+99.0%	+$35.00

When traders use cash-secured put on WTMF

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

WTMF thesis for this cash-secured put

The market-implied 1-standard-deviation range for WTMF extends from approximately $32.65 on the downside to $48.83 on the upside. A WTMF cash-secured put lets a trader earn premium while waiting to acquire WTMF 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 WTMF IV rank near 48.05% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on WTMF should anchor more to the directional view and the expected-move geometry. As a Financial Services name, WTMF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WTMF-specific events.

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

Frequently asked questions

What is a cash-secured put on WTMF?: A cash-secured put on WTMF is the cash-secured put strategy applied to WTMF (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 WTMF etf trading near $40.74, the strikes shown on this page are snapped to the nearest listed WTMF chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are WTMF 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 WTMF cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 69.30%), the computed maximum profit is $35.00 per contract and the computed maximum loss is -$3,864.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WTMF cash-secured put?: The breakeven for the WTMF cash-secured put priced on this page is roughly $38.65 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 WTMF market-implied 1-standard-deviation expected move is approximately 19.87%; 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 WTMF?: Cash-secured puts on WTMF earn premium while a trader waits to acquire WTMF etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning WTMF.
How does current WTMF implied volatility affect this cash-secured put?: WTMF ATM IV is at 69.30% with IV rank near 48.05%, 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.