How are BIL 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 BIL long put priced from the end-of-day chain at a 30-day expiry (ATM IV 361.90%), the computed maximum profit is $9,136.50 per contract and the computed maximum loss is -$62.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BIL long put?

The breakeven for the BIL long put priced on this page is roughly $91.40 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 BIL market-implied 1-standard-deviation expected move is approximately 103.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BIL implied volatility affect this long put?

BIL ATM IV is at 361.90% with IV rank near 75.70%, 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.

BIL Long Put Strategy

BIL (State Street SPDR Bloomberg 1-3 Month T-Bill ETF), in the Financial Services sector, (Asset Management - Bonds industry), listed on AMEX.

The State Street SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) is designed to closely mirror the price appreciation and income generation of the Bloomberg 1-3 Month U.S. Treasury Bill Index, prior to accounting for its operational costs. This fund primarily invests in government-issued U.S. Treasury Bills that have a remaining term of just one to three months. Due to this ultra-short maturity profile, the ETF exhibits lower sensitivity to shifts in interest rates compared to debt instruments with longer durations. Its holdings are adjusted and rebalanced on the last trading day of each month.

BIL (State Street SPDR Bloomberg 1-3 Month T-Bill ETF) trades in the Financial Services sector, specifically Asset Management - Bonds, with a market capitalization of approximately $46.14B, a beta of 0.00 versus the broader market, a 52-week range of 91.26-91.78, average daily share volume of 11.0M, a public-listing history dating back to 2007. These structural characteristics shape how BIL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.00 indicates BIL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. BIL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long put on BIL?

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 BIL snapshot

As of June 29, 2026, spot at $91.63, ATM IV 361.90%, IV rank 75.70%, expected move 103.75%. The long put on BIL 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 18-day expiry.

Why this long put structure on BIL specifically: BIL IV at 361.90% is rich versus its 1-year range, which makes a premium-buying BIL long put relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 103.75% (roughly $95.07 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BIL expiries trade a higher absolute premium for lower per-day decay. Position sizing on BIL should anchor to the underlying notional of $91.63 per share and to the trader's directional view on BIL etf.

BIL long put setup

The BIL 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 BIL near $91.63, the first option leg uses a $92.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BIL chain at a 18-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 BIL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$92.00	$0.63

BIL long put risk and reward

Net Premium / Debit: -$62.50
Max Profit (per contract): $9,136.50
Max Loss (per contract): -$62.50
Breakeven(s): $91.40
Risk / Reward Ratio: 146.184

Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.

BIL long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on BIL. 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	-100.0%	+$9,136.50
$20.27	-77.9%	+$7,110.62
$40.53	-55.8%	+$5,084.74
$60.79	-33.7%	+$3,058.86
$81.05	-11.6%	+$1,032.98
$101.30	+10.6%	-$62.50
$121.56	+32.7%	-$62.50
$141.82	+54.8%	-$62.50
$162.08	+76.9%	-$62.50
$182.34	+99.0%	-$62.50

When traders use long put on BIL

Long puts on BIL hedge an existing long BIL etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BIL exposure being hedged.

BIL thesis for this long put

The market-implied 1-standard-deviation range for BIL extends from approximately $-3.44 on the downside to $186.70 on the upside. A BIL long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long BIL position with one put per 100 shares held. Current BIL IV rank near 75.70% 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 BIL at 361.90%. As a Financial Services name, BIL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BIL-specific events.

BIL 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. BIL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BIL alongside the broader basket even when BIL-specific fundamentals are unchanged. Long-premium structures like a long put on BIL 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 BIL chain quotes before placing a trade.

Frequently asked questions

What is a long put on BIL?: A long put on BIL is the long put strategy applied to BIL (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 BIL etf trading near $91.63, the strikes shown on this page are snapped to the nearest listed BIL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BIL 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 BIL long put priced from the end-of-day chain at a 30-day expiry (ATM IV 361.90%), the computed maximum profit is $9,136.50 per contract and the computed maximum loss is -$62.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BIL long put?: The breakeven for the BIL long put priced on this page is roughly $91.40 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 BIL market-implied 1-standard-deviation expected move is approximately 103.75%; 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 BIL?: Long puts on BIL hedge an existing long BIL etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying BIL exposure being hedged.
How does current BIL implied volatility affect this long put?: BIL ATM IV is at 361.90% with IV rank near 75.70%, 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.