How are DUG 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 DUG cash-secured put priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 48.20%), the computed maximum profit is $60.00 per contract and the computed maximum loss is -$1,239.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

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

The breakeven for the DUG cash-secured put priced on this page is roughly $12.40 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 DUG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

DUG ATM IV is at 48.20% with IV rank near 34.82%, 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.

DUG Cash-Secured Put Strategy

DUG (ProShares UltraShort Energy), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.

DUG provides (-2x) inverse exposure to the daily performance of the S&P Energy Select Sector Index, a market-cap-weighted index of US oil and gas companies. The funds concentrated portfolio typically includes firms engaged in oil and gas exploration and production, integrated oil and gas, equipment for oil as well as renewable energy, pipelines, and alternative fuel producers. As a levered product with daily resets, DUG is not a buy-and-hold investment and should not be expected to provide index leverage returns greater than a one-day period. Prior to Mar. 20, 2023, the fund was called ProShares UltraShort Energy that tracked the Dow Jones U.S. Oil & Gas Index.

DUG (ProShares UltraShort Energy) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $15.9M, a beta of -0.03 versus the broader market, a 52-week range of 11.89-34.74, average daily share volume of 242K, a public-listing history dating back to 2007. These structural characteristics shape how DUG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.03 indicates DUG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. DUG 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 DUG?

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.

DUG snapshot

As of November 13, 2026, spot at $13.77, ATM IV 48.20%, IV rank 34.82%, expected move 13.82%. The cash-secured put on DUG 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 DUG specifically: DUG IV at 48.20% is mid-range versus its 1-year history, so the credit collected on a DUG cash-secured put sits in line with its long-run distribution, with a market-implied 1-standard-deviation move of approximately 13.82% (roughly $1.90 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 DUG expiries trade a higher absolute premium for lower per-day decay. Position sizing on DUG should anchor to the underlying notional of $13.77 per share and to the trader's directional view on DUG etf.

DUG cash-secured put setup

The DUG 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 DUG at $13.77 on that close, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DUG 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 DUG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$13.00	$0.60

DUG cash-secured put risk and reward

Net Premium / Debit: +$60.00
Max Profit (per contract): $60.00
Max Loss (per contract): -$1,239.00
Breakeven(s): $12.40
Risk / Reward Ratio: 0.048

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

DUG cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on DUG. 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%	-$1,239.00
$3.05	-77.8%	-$934.65
$6.10	-55.7%	-$630.30
$9.14	-33.6%	-$325.94
$12.18	-11.5%	-$21.59
$15.23	+10.6%	+$60.00
$18.27	+32.7%	+$60.00
$21.31	+54.8%	+$60.00
$24.36	+76.9%	+$60.00
$27.40	+99.0%	+$60.00

When traders use cash-secured put on DUG

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

DUG thesis for this cash-secured put

The market-implied 1-standard-deviation range for DUG extends from approximately $11.87 on the downside to $15.67 on the upside. A DUG cash-secured put lets a trader earn premium while waiting to acquire DUG 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 DUG IV rank near 34.82% is mid-range against its 1-year distribution, so the IV signal is neutral; the cash-secured put thesis on DUG should anchor more to the directional view and the expected-move geometry. As a Financial Services name, DUG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DUG-specific events.

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

Frequently asked questions

What is a cash-secured put on DUG?: A cash-secured put on DUG is the cash-secured put strategy applied to DUG (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 DUG etf at $13.77 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed DUG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are DUG 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 DUG cash-secured put priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 48.20%), the computed maximum profit is $60.00 per contract and the computed maximum loss is -$1,239.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DUG cash-secured put?: The breakeven for the DUG cash-secured put priced on this page is roughly $12.40 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 DUG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.82%; 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 DUG?: Cash-secured puts on DUG earn premium while a trader waits to acquire DUG etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning DUG.
How does current DUG implied volatility affect this cash-secured put?: DUG ATM IV is at 48.20% with IV rank near 34.82%, 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.