CHAU Long Put Strategy
CHAU (Direxion Daily CSI 300 China A Share Bull 2X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The Direxion Daily CSI 300 China A Share Bull 2X ETF seeks daily investment results, before fees and expenses, of 200% of the performance of the CSI 300 Index. There is no guarantee the fund will achieve its stated investment objective.
CHAU (Direxion Daily CSI 300 China A Share Bull 2X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $208.9M, a beta of 0.94 versus the broader market, a 52-week range of 13.66-25.81, average daily share volume of 133K, 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 0.94 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.
Current CHAU snapshot
As of May 15, 2026, spot at $23.77, ATM IV 46.80%, IV rank 62.80%, expected move 13.42%. The long put on CHAU 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 long put structure on CHAU specifically: CHAU IV at 46.80% 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 13.42% (roughly $3.19 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 CHAU expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHAU should anchor to the underlying notional of $23.77 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 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CHAU near $23.77, the first option leg uses a $24.00 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 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 CHAU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $24.00 | $1.90 |
CHAU long put risk and reward
- Net Premium / Debit
- -$190.00
- Max Profit (per contract)
- $2,209.00
- Max Loss (per contract)
- -$190.00
- Breakeven(s)
- $22.10
- Risk / Reward Ratio
- 11.626
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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | +$2,209.00 |
| $5.26 | -77.9% | +$1,683.54 |
| $10.52 | -55.7% | +$1,158.09 |
| $15.77 | -33.6% | +$632.63 |
| $21.03 | -11.5% | +$107.17 |
| $26.28 | +10.6% | -$190.00 |
| $31.54 | +32.7% | -$190.00 |
| $36.79 | +54.8% | -$190.00 |
| $42.05 | +76.9% | -$190.00 |
| $47.30 | +99.0% | -$190.00 |
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 $20.58 on the downside to $26.96 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 62.80% 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 trading near $23.77, the strikes shown on this page are snapped to the nearest listed CHAU chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 46.80%), the computed maximum profit is $2,209.00 per contract and the computed maximum loss is -$190.00 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 $22.10 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 CHAU market-implied 1-standard-deviation expected move is approximately 13.42%; 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 46.80% with IV rank near 62.80%, 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.