How are CHAU 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 CHAU long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 43.40%), the computed maximum profit is $2,096.50 per contract and the computed maximum loss is -$102.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CHAU long put?

The breakeven for the CHAU long put priced on this page is roughly $20.98 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 CHAU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CHAU implied volatility affect this long put?

CHAU ATM IV is at 43.40% with IV rank near 48.33%, 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.

CHAU Long Put Strategy

CHAU (Direxion Daily CSI 300 China A Share Bull 2X Shares), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The index is a modified free-float market capitalization weighted index comprised of the largest and most liquid stocks in the Chinese A-share market. The fund, under normal circumstances, invests at least 80% of its net assets in financial instruments, such as swap agreements, securities of the index, and ETFs that track the index, that, in combination, provide 2X daily leveraged exposure to the index, consistent with the fund's investment objective. It is non-diversified.

CHAU (Direxion Daily CSI 300 China A Share Bull 2X Shares) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $95.8M, a beta of 1.02 versus the broader market, a 52-week range of 16.51-26.1, average daily share volume of 132K, a public-listing history dating back to 2015. These structural characteristics shape how CHAU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.02 places CHAU roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CHAU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long put on CHAU?

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.

CHAU snapshot

As of August 14, 2026, spot at $22.16, ATM IV 43.40%, IV rank 48.33%, expected move 12.44%. The long put on CHAU 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 35-day expiry.

Why this long put structure on CHAU specifically: CHAU IV at 43.40% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 12.44% (roughly $2.76 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 CHAU expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHAU should anchor to the underlying notional of $22.16 per share and to the trader's directional view on CHAU etf.

CHAU long put setup

The CHAU long 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 CHAU at $22.16 on that close, the first option leg uses a $22.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHAU 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 CHAU shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$22.00	$1.03

CHAU long put risk and reward

Net Premium / Debit: -$102.50
Max Profit (per contract): $2,096.50
Max Loss (per contract): -$102.50
Breakeven(s): $20.98
Risk / Reward Ratio: 20.454

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

CHAU long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long put on CHAU. 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%	+$2,096.50
$4.91	-77.8%	+$1,606.64
$9.81	-55.7%	+$1,116.78
$14.71	-33.6%	+$626.92
$19.60	-11.5%	+$137.06
$24.50	+10.6%	-$102.50
$29.40	+32.7%	-$102.50
$34.30	+54.8%	-$102.50
$39.20	+76.9%	-$102.50
$44.10	+99.0%	-$102.50

When traders use long put on CHAU

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

CHAU thesis for this long put

The market-implied 1-standard-deviation range for CHAU extends from approximately $19.40 on the downside to $24.92 on the upside. A CHAU long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long CHAU position with one put per 100 shares held. Current CHAU IV rank near 48.33% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on CHAU should anchor more to the directional view and the expected-move geometry. As a Financial Services name, CHAU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHAU-specific events.

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

Frequently asked questions

What is a long put on CHAU?: A long put on CHAU is the long put strategy applied to CHAU (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 CHAU etf at $22.16 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CHAU chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CHAU 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 CHAU long put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 43.40%), the computed maximum profit is $2,096.50 per contract and the computed maximum loss is -$102.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CHAU long put?: The breakeven for the CHAU long put priced on this page is roughly $20.98 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 CHAU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.44%; 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 CHAU?: Long puts on CHAU hedge an existing long CHAU etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying CHAU exposure being hedged.
How does current CHAU implied volatility affect this long put?: CHAU ATM IV is at 43.40% with IV rank near 48.33%, 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.