BIS Cash-Secured Put Strategy
BIS (ProShares - UltraShort Nasdaq Biotechnology), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.
The ProShares UltraShort Nasdaq Biotechnology fund is engineered to achieve daily returns that are precisely two times the inverse (-2x) of the Nasdaq Biotechnology Index's daily performance. This objective is measured before accounting for any associated fees and operational expenses.
BIS (ProShares - UltraShort Nasdaq Biotechnology) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $1.8M, a beta of -1.22 versus the broader market, a 52-week range of 9.92-21.14, average daily share volume of 9K, a public-listing history dating back to 2010, approximately 98 full-time employees. These structural characteristics shape how BIS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -1.22 indicates BIS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. BIS 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 BIS?
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.
BIS snapshot
As of November 13, 2026, spot at $10.66, ATM IV 49.30%, expected move 14.13%. The cash-secured put on BIS below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this cash-secured put structure on BIS specifically: IV rank is unavailable in the current snapshot, so regime-based timing for BIS is inferred from ATM IV at 49.30% alone, with a market-implied 1-standard-deviation move of approximately 14.13% (roughly $1.51 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BIS expiries trade a higher absolute premium for lower per-day decay. Position sizing on BIS should anchor to the underlying notional of $10.66 per share and to the trader's directional view on BIS etf.
BIS cash-secured put setup
The BIS cash-secured put below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BIS at $10.66 on that close, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BIS chain at a 35-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 BIS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $10.00 | $0.40 |
BIS cash-secured put risk and reward
- Net Premium / Debit
- +$40.00
- Max Profit (per contract)
- $40.00
- Max Loss (per contract)
- -$959.00
- Breakeven(s)
- $9.60
- Risk / Reward Ratio
- 0.042
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
BIS cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on BIS. 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 | -99.9% | -$959.00 |
| $2.37 | -77.8% | -$723.41 |
| $4.72 | -55.7% | -$487.82 |
| $7.08 | -33.6% | -$252.24 |
| $9.43 | -11.5% | -$16.65 |
| $11.79 | +10.6% | +$40.00 |
| $14.15 | +32.7% | +$40.00 |
| $16.50 | +54.8% | +$40.00 |
| $18.86 | +76.9% | +$40.00 |
| $21.21 | +99.0% | +$40.00 |
When traders use cash-secured put on BIS
Cash-secured puts on BIS earn premium while a trader waits to acquire BIS etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning BIS.
BIS thesis for this cash-secured put
The market-implied 1-standard-deviation range for BIS extends from approximately $9.15 on the downside to $12.17 on the upside. A BIS cash-secured put lets a trader earn premium while waiting to acquire BIS 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, BIS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BIS-specific events.
BIS 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. BIS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BIS alongside the broader basket even when BIS-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on BIS carry tail risk when realized volatility exceeds the implied move; review historical BIS earnings reactions and macro stress periods before sizing. Always rebuild the position from current BIS chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on BIS?
- A cash-secured put on BIS is the cash-secured put strategy applied to BIS (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 BIS etf at $10.66 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed BIS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BIS 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 BIS cash-secured put priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 49.30%), the computed maximum profit is $40.00 per contract and the computed maximum loss is -$959.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BIS cash-secured put?
- The breakeven for the BIS cash-secured put priced on this page is roughly $9.60 at expiration, derived from the November 13, 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 BIS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.13%; 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 BIS?
- Cash-secured puts on BIS earn premium while a trader waits to acquire BIS etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning BIS.
- How does current BIS implied volatility affect this cash-secured put?
- Current BIS ATM IV is 49.30%; IV rank context is unavailable in the current snapshot.