WTPI Cash-Secured Put Strategy
WTPI (WisdomTree Equity Premium Income Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The WisdomTree Equity Premium Income Fund (Ticker: WTPI) is an exchange-traded fund (ETF) managed by WisdomTree, Inc. The fund seeks to provide investors with consistent income by selling put options bi-weekly on the S&P 500 Index, targeting a 2.5% premium. This strategy aims to capitalize on the volatility premium in the options market, potentially offering attractive income opportunities, especially in flat-to-down market conditions.
WTPI (WisdomTree Equity Premium Income Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $463.3M, a beta of 0.58 versus the broader market, a 52-week range of 31.04-33.92, average daily share volume of 115K, a public-listing history dating back to 2007. These structural characteristics shape how WTPI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.58 indicates WTPI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. WTPI 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 WTPI?
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 WTPI snapshot
As of May 15, 2026, spot at $33.19, ATM IV 44.20%, IV rank 10.54%, expected move 12.67%. The cash-secured put on WTPI 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 WTPI specifically: WTPI IV at 44.20% is on the cheap side of its 1-year range, which means a premium-selling WTPI cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 12.67% (roughly $4.21 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 WTPI expiries trade a higher absolute premium for lower per-day decay. Position sizing on WTPI should anchor to the underlying notional of $33.19 per share and to the trader's directional view on WTPI etf.
WTPI cash-secured put setup
The WTPI 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 WTPI near $33.19, the first option leg uses a $32.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WTPI 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 WTPI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $32.00 | $1.19 |
WTPI cash-secured put risk and reward
- Net Premium / Debit
- +$119.00
- Max Profit (per contract)
- $119.00
- Max Loss (per contract)
- -$3,080.00
- Breakeven(s)
- $30.81
- Risk / Reward Ratio
- 0.039
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
WTPI cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on WTPI. 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% | -$3,080.00 |
| $7.35 | -77.9% | -$2,346.26 |
| $14.68 | -55.8% | -$1,612.52 |
| $22.02 | -33.6% | -$878.78 |
| $29.36 | -11.5% | -$145.05 |
| $36.70 | +10.6% | +$119.00 |
| $44.03 | +32.7% | +$119.00 |
| $51.37 | +54.8% | +$119.00 |
| $58.71 | +76.9% | +$119.00 |
| $66.05 | +99.0% | +$119.00 |
When traders use cash-secured put on WTPI
Cash-secured puts on WTPI earn premium while a trader waits to acquire WTPI etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning WTPI.
WTPI thesis for this cash-secured put
The market-implied 1-standard-deviation range for WTPI extends from approximately $28.98 on the downside to $37.40 on the upside. A WTPI cash-secured put lets a trader earn premium while waiting to acquire WTPI 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 WTPI IV rank near 10.54% 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 WTPI at 44.20%. As a Financial Services name, WTPI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WTPI-specific events.
WTPI 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. WTPI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WTPI alongside the broader basket even when WTPI-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on WTPI carry tail risk when realized volatility exceeds the implied move; review historical WTPI earnings reactions and macro stress periods before sizing. Always rebuild the position from current WTPI chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on WTPI?
- A cash-secured put on WTPI is the cash-secured put strategy applied to WTPI (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 WTPI etf trading near $33.19, the strikes shown on this page are snapped to the nearest listed WTPI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WTPI 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 WTPI cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 44.20%), the computed maximum profit is $119.00 per contract and the computed maximum loss is -$3,080.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a WTPI cash-secured put?
- The breakeven for the WTPI cash-secured put priced on this page is roughly $30.81 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 WTPI market-implied 1-standard-deviation expected move is approximately 12.67%; 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 WTPI?
- Cash-secured puts on WTPI earn premium while a trader waits to acquire WTPI etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning WTPI.
- How does current WTPI implied volatility affect this cash-secured put?
- WTPI ATM IV is at 44.20% with IV rank near 10.54%, 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.