DUSL Bear Put Spread Strategy
DUSL (Direxion Daily Industrials Bull 3X ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Direxion Daily Industrials Bull 3X ETF seeks daily investment results, before fees and expenses, of 300% of the performance of the Industrials Select Sector Index. There is no guarantee the fund will achieve its stated investment objective.
DUSL (Direxion Daily Industrials Bull 3X ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $40.5M, a beta of 3.24 versus the broader market, a 52-week range of 57.9-100.94, average daily share volume of 25K, a public-listing history dating back to 2017. These structural characteristics shape how DUSL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.24 indicates DUSL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. DUSL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a bear put spread on DUSL?
A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width.
Current DUSL snapshot
As of May 15, 2026, spot at $84.81, ATM IV 64.30%, IV rank 45.36%, expected move 18.43%. The bear put spread on DUSL 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 bear put spread structure on DUSL specifically: DUSL IV at 64.30% 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 18.43% (roughly $15.63 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 DUSL expiries trade a higher absolute premium for lower per-day decay. Position sizing on DUSL should anchor to the underlying notional of $84.81 per share and to the trader's directional view on DUSL etf.
DUSL bear put spread setup
The DUSL bear put spread below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With DUSL near $84.81, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DUSL 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 DUSL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $85.00 | $6.43 |
| Sell 1 | Put | $80.00 | $4.50 |
DUSL bear put spread risk and reward
- Net Premium / Debit
- -$192.50
- Max Profit (per contract)
- $307.50
- Max Loss (per contract)
- -$192.50
- Breakeven(s)
- $83.08
- Risk / Reward Ratio
- 1.597
Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit.
DUSL bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on DUSL. 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% | +$307.50 |
| $18.76 | -77.9% | +$307.50 |
| $37.51 | -55.8% | +$307.50 |
| $56.26 | -33.7% | +$307.50 |
| $75.01 | -11.6% | +$307.50 |
| $93.76 | +10.6% | -$192.50 |
| $112.52 | +32.7% | -$192.50 |
| $131.27 | +54.8% | -$192.50 |
| $150.02 | +76.9% | -$192.50 |
| $168.77 | +99.0% | -$192.50 |
When traders use bear put spread on DUSL
Bear put spreads on DUSL reduce the cost of a bearish DUSL etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
DUSL thesis for this bear put spread
The market-implied 1-standard-deviation range for DUSL extends from approximately $69.18 on the downside to $100.44 on the upside. A DUSL bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on DUSL, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current DUSL IV rank near 45.36% is mid-range against its 1-year distribution, so the IV signal is neutral; the bear put spread thesis on DUSL should anchor more to the directional view and the expected-move geometry. As a Financial Services name, DUSL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DUSL-specific events.
DUSL bear put spread positions are structurally moderately 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. DUSL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DUSL alongside the broader basket even when DUSL-specific fundamentals are unchanged. Long-premium structures like a bear put spread on DUSL 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 DUSL chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on DUSL?
- A bear put spread on DUSL is the bear put spread strategy applied to DUSL (etf). The strategy is structurally moderately bearish: A bear put spread buys an at-the-money put and sells an out-of-the-money put at a lower strike for defined risk and defined reward bounded by the strike width. With DUSL etf trading near $84.81, the strikes shown on this page are snapped to the nearest listed DUSL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DUSL bear put spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-put strike minus net debit. For the DUSL bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 64.30%), the computed maximum profit is $307.50 per contract and the computed maximum loss is -$192.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DUSL bear put spread?
- The breakeven for the DUSL bear put spread priced on this page is roughly $83.08 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 DUSL market-implied 1-standard-deviation expected move is approximately 18.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bear put spread on DUSL?
- Bear put spreads on DUSL reduce the cost of a bearish DUSL etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
- How does current DUSL implied volatility affect this bear put spread?
- DUSL ATM IV is at 64.30% with IV rank near 45.36%, 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.