How are AMZD 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 AMZD cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 356.60%), the computed maximum profit is $28.00 per contract and the computed maximum loss is -$771.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

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

The breakeven for the AMZD cash-secured put priced on this page is roughly $7.72 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AMZD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 102.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

AMZD ATM IV is at 356.60% with IV rank near 71.95%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

AMZD Cash-Secured Put Strategy

AMZD (Direxion Daily AMZN Bear 1X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.

The Direxion Daily AMZN Bear 1X ETF, along with its counterpart, the Direxion Daily AMZN Bull 2X ETF, are constructed to deliver specific daily investment outcomes tied to the common shares of Amazon.com, Inc. (NASDAQ: AMZN). Before the deduction of any fees or expenses, the Bear 1X ETF (AMZD) aims to produce daily returns that precisely match 100% of the inverse (or opposite) performance of Amazon's stock. Conversely, the Bull 2X ETF endeavors to achieve daily returns equivalent to 200% of Amazon's daily performance.

AMZD (Direxion Daily AMZN Bear 1X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $11.1M, a beta of -1.33 versus the broader market, a 52-week range of 7.64-11.77, average daily share volume of 13.3M, a public-listing history dating back to 2022. These structural characteristics shape how AMZD etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -1.33 indicates AMZD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AMZD 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 AMZD?

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.

AMZD snapshot

As of August 14, 2026, spot at $8.32, ATM IV 356.60%, IV rank 71.95%, expected move 102.23%. The cash-secured put on AMZD below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 63-day expiry.

Why this cash-secured put structure on AMZD specifically: AMZD IV at 356.60% is rich versus its 1-year range, which favors premium-selling structures like a AMZD cash-secured put, with a market-implied 1-standard-deviation move of approximately 102.23% (roughly $8.51 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AMZD expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMZD should anchor to the underlying notional of $8.32 per share and to the trader's directional view on AMZD etf.

AMZD cash-secured put setup

The AMZD cash-secured put below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AMZD at $8.32 on that close, the first option leg uses a $8.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMZD chain at a 63-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 AMZD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$8.00	$0.28

AMZD cash-secured put risk and reward

Net Premium / Debit: +$28.00
Max Profit (per contract): $28.00
Max Loss (per contract): -$771.00
Breakeven(s): $7.72
Risk / Reward Ratio: 0.036

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

AMZD cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on AMZD. 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	-99.9%	-$771.00
$1.85	-77.8%	-$587.15
$3.69	-55.7%	-$403.30
$5.53	-33.6%	-$219.45
$7.36	-11.5%	-$35.60
$9.20	+10.6%	+$28.00
$11.04	+32.7%	+$28.00
$12.88	+54.8%	+$28.00
$14.72	+76.9%	+$28.00
$16.56	+99.0%	+$28.00

When traders use cash-secured put on AMZD

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

AMZD thesis for this cash-secured put

The market-implied 1-standard-deviation range for AMZD extends from approximately $-0.19 on the downside to $16.83 on the upside. A AMZD cash-secured put lets a trader earn premium while waiting to acquire AMZD 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 AMZD IV rank near 71.95% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on AMZD at 356.60%. As a Financial Services name, AMZD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMZD-specific events.

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

Frequently asked questions

What is a cash-secured put on AMZD?: A cash-secured put on AMZD is the cash-secured put strategy applied to AMZD (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 AMZD etf at $8.32 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AMZD chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AMZD 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 AMZD cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 356.60%), the computed maximum profit is $28.00 per contract and the computed maximum loss is -$771.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AMZD cash-secured put?: The breakeven for the AMZD cash-secured put priced on this page is roughly $7.72 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AMZD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 102.23%; 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 AMZD?: Cash-secured puts on AMZD earn premium while a trader waits to acquire AMZD etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning AMZD.
How does current AMZD implied volatility affect this cash-secured put?: AMZD ATM IV is at 356.60% with IV rank near 71.95%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.