LLYX Bear Put Spread Strategy
LLYX (Daily Target 2X Long LLY ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund is an actively managed exchange traded fund (“ETF”) that attempts to achieve two times (200%) the daily percentage change in the share price of the Underlying Security by employing derivatives, namely swap agreements and/or listed options contracts. The fund is non-diversified.
LLYX (Daily Target 2X Long LLY ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $97.2M, a beta of 0.18 versus the broader market, a 52-week range of 9.6-28.44, average daily share volume of 434K, a public-listing history dating back to 2024. These structural characteristics shape how LLYX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.18 indicates LLYX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. LLYX 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 LLYX?
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 LLYX snapshot
As of May 14, 2026, spot at $20.05, ATM IV 67.30%, IV rank 28.97%, expected move 19.29%. The bear put spread on LLYX 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 LLYX specifically: LLYX IV at 67.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a LLYX bear put spread, with a market-implied 1-standard-deviation move of approximately 19.29% (roughly $3.87 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 LLYX expiries trade a higher absolute premium for lower per-day decay. Position sizing on LLYX should anchor to the underlying notional of $20.05 per share and to the trader's directional view on LLYX etf.
LLYX bear put spread setup
The LLYX 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 LLYX near $20.05, the first option leg uses a $20.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LLYX 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 LLYX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $20.00 | $1.75 |
| Sell 1 | Put | $19.00 | $1.13 |
LLYX bear put spread risk and reward
- Net Premium / Debit
- -$62.50
- Max Profit (per contract)
- $37.50
- Max Loss (per contract)
- -$62.50
- Breakeven(s)
- $19.38
- Risk / Reward Ratio
- 0.600
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.
LLYX bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on LLYX. 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% | +$37.50 |
| $4.44 | -77.8% | +$37.50 |
| $8.87 | -55.7% | +$37.50 |
| $13.31 | -33.6% | +$37.50 |
| $17.74 | -11.5% | +$37.50 |
| $22.17 | +10.6% | -$62.50 |
| $26.60 | +32.7% | -$62.50 |
| $31.03 | +54.8% | -$62.50 |
| $35.47 | +76.9% | -$62.50 |
| $39.90 | +99.0% | -$62.50 |
When traders use bear put spread on LLYX
Bear put spreads on LLYX reduce the cost of a bearish LLYX etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
LLYX thesis for this bear put spread
The market-implied 1-standard-deviation range for LLYX extends from approximately $16.18 on the downside to $23.92 on the upside. A LLYX bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on LLYX, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current LLYX IV rank near 28.97% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on LLYX at 67.30%. As a Financial Services name, LLYX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LLYX-specific events.
LLYX 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. LLYX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LLYX alongside the broader basket even when LLYX-specific fundamentals are unchanged. Long-premium structures like a bear put spread on LLYX 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 LLYX chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on LLYX?
- A bear put spread on LLYX is the bear put spread strategy applied to LLYX (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 LLYX etf trading near $20.05, the strikes shown on this page are snapped to the nearest listed LLYX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LLYX 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 LLYX bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 67.30%), the computed maximum profit is $37.50 per contract and the computed maximum loss is -$62.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LLYX bear put spread?
- The breakeven for the LLYX bear put spread priced on this page is roughly $19.38 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 LLYX market-implied 1-standard-deviation expected move is approximately 19.29%; 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 LLYX?
- Bear put spreads on LLYX reduce the cost of a bearish LLYX 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 LLYX implied volatility affect this bear put spread?
- LLYX ATM IV is at 67.30% with IV rank near 28.97%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.