How are XME 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 XME cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 37.60%), the computed maximum profit is $265.00 per contract and the computed maximum loss is -$10,734.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

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

The breakeven for the XME cash-secured put priced on this page is roughly $107.35 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 XME market-implied 1-standard-deviation expected move is approximately 10.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

XME ATM IV is at 37.60% with IV rank near 40.63%, 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.

XME Cash-Secured Put Strategy

XME (State Street SPDR S&P Metals & Mining ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The State Street SPDR S&P Metals & Mining ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Metals and Mining Select Industry Index (the "Index")Seeks to provide exposure to the metals & mining segment of the S&P TMI, which comprises the following sub-industries: Aluminum, Coal & Consumable Fuels, Copper, Diversified Metals & Mining, Gold, Precious Metals & Minerals, Silver, and SteelSeeks to track a modified equal weighted index which provides the potential for unconcentrated industry exposure across large, mid and small cap stocksAllows investors to take strategic or tactical positions at a more targeted level than traditional sector based investing

XME (State Street SPDR S&P Metals & Mining ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $5.62B, a beta of 1.45 versus the broader market, a 52-week range of 58-135.68, average daily share volume of 2.3M, a public-listing history dating back to 2006. These structural characteristics shape how XME etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.45 indicates XME has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. XME 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 XME?

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 XME snapshot

As of May 15, 2026, spot at $115.69, ATM IV 37.60%, IV rank 40.63%, expected move 10.78%. The cash-secured put on XME 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 XME specifically: XME IV at 37.60% is mid-range versus its 1-year history, so the credit collected on a XME cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 10.78% (roughly $12.47 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 XME expiries trade a higher absolute premium for lower per-day decay. Position sizing on XME should anchor to the underlying notional of $115.69 per share and to the trader's directional view on XME etf.

XME cash-secured put setup

The XME 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 XME near $115.69, the first option leg uses a $110.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XME 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 XME shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$110.00	$2.65

XME cash-secured put risk and reward

Net Premium / Debit: +$265.00
Max Profit (per contract): $265.00
Max Loss (per contract): -$10,734.00
Breakeven(s): $107.35
Risk / Reward Ratio: 0.025

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

XME cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on XME. 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%	-$10,734.00
$25.59	-77.9%	-$8,176.14
$51.17	-55.8%	-$5,618.28
$76.75	-33.7%	-$3,060.42
$102.32	-11.6%	-$502.56
$127.90	+10.6%	+$265.00
$153.48	+32.7%	+$265.00
$179.06	+54.8%	+$265.00
$204.64	+76.9%	+$265.00
$230.22	+99.0%	+$265.00

When traders use cash-secured put on XME

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

XME thesis for this cash-secured put

The market-implied 1-standard-deviation range for XME extends from approximately $103.22 on the downside to $128.16 on the upside. A XME cash-secured put lets a trader earn premium while waiting to acquire XME 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 XME IV rank near 40.63% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on XME should anchor more to the directional view and the expected-move geometry. As a Financial Services name, XME options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XME-specific events.

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

Frequently asked questions

What is a cash-secured put on XME?: A cash-secured put on XME is the cash-secured put strategy applied to XME (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 XME etf trading near $115.69, the strikes shown on this page are snapped to the nearest listed XME chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are XME 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 XME cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 37.60%), the computed maximum profit is $265.00 per contract and the computed maximum loss is -$10,734.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a XME cash-secured put?: The breakeven for the XME cash-secured put priced on this page is roughly $107.35 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 XME market-implied 1-standard-deviation expected move is approximately 10.78%; 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 XME?: Cash-secured puts on XME earn premium while a trader waits to acquire XME etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning XME.
How does current XME implied volatility affect this cash-secured put?: XME ATM IV is at 37.60% with IV rank near 40.63%, 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.