EART Cash-Secured Put Strategy
EART (Global X Rare Earth & Critical Materials ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
DMAT tracks an index of global stocks that produce metals and other raw materials essential to the expansion of disruptive technologies. Disruptive Materials Companies derive at least 50% of their revenues from the exploration, mining, production and/or enhancement of one or more of 10 materials categories that include Rare Earth Materials, Lithium, Copper, Carbon Fiber, etc. Stocks not meeting the revenue requirements are considered after review and recognized as Pre-Revenue Disruptive Materials Companies. In the case of Lithium, stocks with associated revenue between 25-50% are also eligible as Diversified Lithium Companies. The fund uses a natural language processing algorithm to identify and rank stocks. The five highest-ranked Disruptive Materials and Pre-Revenue Disruptive Materials Companies per materials category are selected.
EART (Global X Rare Earth & Critical Materials ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $59.8M, a beta of 1.28 versus the broader market, a 52-week range of 14.72-36.92, average daily share volume of 24K, a public-listing history dating back to 2022. These structural characteristics shape how EART stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.28 places EART roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. EART 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 EART?
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 EART snapshot
As of May 15, 2026, spot at $32.38, ATM IV 43.80%, expected move 12.56%. The cash-secured put on EART 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 EART specifically: IV rank is unavailable in the current snapshot, so regime-based timing for EART is inferred from ATM IV at 43.80% alone, with a market-implied 1-standard-deviation move of approximately 12.56% (roughly $4.07 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 EART expiries trade a higher absolute premium for lower per-day decay. Position sizing on EART should anchor to the underlying notional of $32.38 per share and to the trader's directional view on EART stock.
EART cash-secured put setup
The EART 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 EART near $32.38, the first option leg uses a $31.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EART 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 EART shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $31.00 | $1.10 |
EART cash-secured put risk and reward
- Net Premium / Debit
- +$110.00
- Max Profit (per contract)
- $110.00
- Max Loss (per contract)
- -$2,989.00
- Breakeven(s)
- $29.90
- Risk / Reward Ratio
- 0.037
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
EART cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on EART. 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% | -$2,989.00 |
| $7.17 | -77.9% | -$2,273.17 |
| $14.33 | -55.8% | -$1,557.34 |
| $21.48 | -33.6% | -$841.51 |
| $28.64 | -11.5% | -$125.68 |
| $35.80 | +10.6% | +$110.00 |
| $42.96 | +32.7% | +$110.00 |
| $50.12 | +54.8% | +$110.00 |
| $57.28 | +76.9% | +$110.00 |
| $64.43 | +99.0% | +$110.00 |
When traders use cash-secured put on EART
Cash-secured puts on EART earn premium while a trader waits to acquire EART stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning EART.
EART thesis for this cash-secured put
The market-implied 1-standard-deviation range for EART extends from approximately $28.31 on the downside to $36.45 on the upside. A EART cash-secured put lets a trader earn premium while waiting to acquire EART 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. As a Financial Services name, EART options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EART-specific events.
EART 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. EART positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EART alongside the broader basket even when EART-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on EART carry tail risk when realized volatility exceeds the implied move; review historical EART earnings reactions and macro stress periods before sizing. Always rebuild the position from current EART chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on EART?
- A cash-secured put on EART is the cash-secured put strategy applied to EART (stock). 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 EART stock trading near $32.38, the strikes shown on this page are snapped to the nearest listed EART chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EART 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 EART cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 43.80%), the computed maximum profit is $110.00 per contract and the computed maximum loss is -$2,989.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EART cash-secured put?
- The breakeven for the EART cash-secured put priced on this page is roughly $29.90 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 EART market-implied 1-standard-deviation expected move is approximately 12.56%; 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 EART?
- Cash-secured puts on EART earn premium while a trader waits to acquire EART stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning EART.
- How does current EART implied volatility affect this cash-secured put?
- Current EART ATM IV is 43.80%; IV rank context is unavailable in the current snapshot.