EFO Long Put Strategy
EFO (ProShares - Ultra MSCI EAFE), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares Ultra MSCI EAFE seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the MSCI EAFE Index.
EFO (ProShares - Ultra MSCI EAFE) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $29.6M, a beta of 1.32 versus the broader market, a 52-week range of 51-76.5, average daily share volume of 12K, a public-listing history dating back to 2009. These structural characteristics shape how EFO etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.32 indicates EFO has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. EFO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on EFO?
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 EFO snapshot
As of May 15, 2026, spot at $68.71, ATM IV 37.60%, IV rank 39.75%, expected move 10.78%. The long put on EFO 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 EFO specifically: EFO IV at 37.60% 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 10.78% (roughly $7.41 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 EFO expiries trade a higher absolute premium for lower per-day decay. Position sizing on EFO should anchor to the underlying notional of $68.71 per share and to the trader's directional view on EFO etf.
EFO long put setup
The EFO 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 EFO near $68.71, the first option leg uses a $69.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EFO 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 EFO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $69.00 | $3.10 |
EFO long put risk and reward
- Net Premium / Debit
- -$310.00
- Max Profit (per contract)
- $6,589.00
- Max Loss (per contract)
- -$310.00
- Breakeven(s)
- $65.90
- Risk / Reward Ratio
- 21.255
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
EFO long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on EFO. 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% | +$6,589.00 |
| $15.20 | -77.9% | +$5,069.89 |
| $30.39 | -55.8% | +$3,550.79 |
| $45.58 | -33.7% | +$2,031.68 |
| $60.77 | -11.5% | +$512.58 |
| $75.97 | +10.6% | -$310.00 |
| $91.16 | +32.7% | -$310.00 |
| $106.35 | +54.8% | -$310.00 |
| $121.54 | +76.9% | -$310.00 |
| $136.73 | +99.0% | -$310.00 |
When traders use long put on EFO
Long puts on EFO hedge an existing long EFO etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying EFO exposure being hedged.
EFO thesis for this long put
The market-implied 1-standard-deviation range for EFO extends from approximately $61.30 on the downside to $76.12 on the upside. A EFO long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long EFO position with one put per 100 shares held. Current EFO IV rank near 39.75% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on EFO should anchor more to the directional view and the expected-move geometry. As a Financial Services name, EFO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EFO-specific events.
EFO 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. EFO positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EFO alongside the broader basket even when EFO-specific fundamentals are unchanged. Long-premium structures like a long put on EFO 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 EFO chain quotes before placing a trade.
Frequently asked questions
- What is a long put on EFO?
- A long put on EFO is the long put strategy applied to EFO (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 EFO etf trading near $68.71, the strikes shown on this page are snapped to the nearest listed EFO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EFO 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 EFO long put priced from the end-of-day chain at a 30-day expiry (ATM IV 37.60%), the computed maximum profit is $6,589.00 per contract and the computed maximum loss is -$310.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EFO long put?
- The breakeven for the EFO long put priced on this page is roughly $65.90 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 EFO market-implied 1-standard-deviation expected move is approximately 10.78%; 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 EFO?
- Long puts on EFO hedge an existing long EFO etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying EFO exposure being hedged.
- How does current EFO implied volatility affect this long put?
- EFO ATM IV is at 37.60% with IV rank near 39.75%, 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.