WTMF Long 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 long put on WTMF?
A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.
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 long 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 long put structure on WTMF specifically: WTMF IV at 69.30% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, 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 long put setup
The WTMF long 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 $41.00 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) |
|---|---|---|---|
| Buy 1 | Put | $41.00 | $1.10 |
WTMF long put risk and reward
- Net Premium / Debit
- -$110.00
- Max Profit (per contract)
- $3,989.00
- Max Loss (per contract)
- -$110.00
- Breakeven(s)
- $39.90
- Risk / Reward Ratio
- 36.264
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
WTMF long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$3,989.00 |
| $9.02 | -77.9% | +$3,088.33 |
| $18.02 | -55.8% | +$2,187.65 |
| $27.03 | -33.7% | +$1,286.98 |
| $36.04 | -11.5% | +$386.31 |
| $45.04 | +10.6% | -$110.00 |
| $54.05 | +32.7% | -$110.00 |
| $63.06 | +54.8% | -$110.00 |
| $72.06 | +76.9% | -$110.00 |
| $81.07 | +99.0% | -$110.00 |
When traders use long put on WTMF
Long puts on WTMF hedge an existing long WTMF etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying WTMF exposure being hedged.
WTMF thesis for this long 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 long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long WTMF position with one put per 100 shares held. Current WTMF IV rank near 48.05% is mid-range against its 1-year distribution, so the IV signal is neutral; the long 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 long put positions are structurally bearish; 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. Long-premium structures like a long put on WTMF are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current WTMF chain quotes before placing a trade.
Frequently asked questions
- What is a long put on WTMF?
- A long put on WTMF is the long put strategy applied to WTMF (etf). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. 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 long put max profit and max loss calculated?
- Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the WTMF long put priced from the end-of-day chain at a 30-day expiry (ATM IV 69.30%), the computed maximum profit is $3,989.00 per contract and the computed maximum loss is -$110.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WTMF long put?
- The breakeven for the WTMF long put priced on this page is roughly $39.90 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 long put on WTMF?
- Long puts on WTMF hedge an existing long WTMF etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying WTMF exposure being hedged.
- How does current WTMF implied volatility affect this long 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.