How are MAGS 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 MAGS bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 29.63%), the computed maximum profit is $222.50 per contract and the computed maximum loss is -$77.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MAGS bear put spread?

The breakeven for the MAGS bear put spread priced on this page is roughly $63.23 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 MAGS market-implied 1-standard-deviation expected move is approximately 8.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MAGS implied volatility affect this bear put spread?

MAGS ATM IV is at 29.63% with IV rank near 71.35%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

MAGS Bear Put Spread Strategy

MAGS (Roundhill Magnificent Seven ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

Listed Funds Trust - Roundhill Magnificent Seven ETF is an exchange traded fund launched by Listed Funds Trust. The fund is co-managed by Exchange Traded Concepts, LLC, Roundhill Financial Inc. It invests in public equity markets. The fund invests directly and through derivatives in stocks of companies operating across Information technology, semiconductors and semiconductor equipment, semiconductors, software and services, software, technology hardware and equipment, automotive, e-commerce discretionary and internet media & services sectors. The fund uses derivatives such as swaps, forwards to create its portfolio. The fund invests in growth and value stocks of large-cap companies.

MAGS (Roundhill Magnificent Seven ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.22B, a beta of 1.27 versus the broader market, a 52-week range of 54.39-71.16, average daily share volume of 4.0M, a public-listing history dating back to 2023, approximately 394 full-time employees. These structural characteristics shape how MAGS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.27 places MAGS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MAGS 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 MAGS?

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 MAGS snapshot

As of June 30, 2026, spot at $64.22, ATM IV 29.63%, IV rank 71.35%, expected move 8.49%. The bear put spread on MAGS 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 31-day expiry.

Why this bear put spread structure on MAGS specifically: MAGS IV at 29.63% is rich versus its 1-year range, which makes a premium-buying MAGS bear put spread relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 8.49% (roughly $5.45 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MAGS expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAGS should anchor to the underlying notional of $64.22 per share and to the trader's directional view on MAGS etf.

MAGS bear put spread setup

The MAGS 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 MAGS near $64.22, the first option leg uses a $64.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAGS chain at a 31-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 MAGS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$64.00	$1.95
Sell 1	Put	$61.00	$1.18

MAGS bear put spread risk and reward

Net Premium / Debit: -$77.50
Max Profit (per contract): $222.50
Max Loss (per contract): -$77.50
Breakeven(s): $63.23
Risk / Reward Ratio: 2.871

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.

MAGS bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on MAGS. 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	-100.0%	+$222.50
$14.21	-77.9%	+$222.50
$28.41	-55.8%	+$222.50
$42.60	-33.7%	+$222.50
$56.80	-11.5%	+$222.50
$71.00	+10.6%	-$77.50
$85.20	+32.7%	-$77.50
$99.40	+54.8%	-$77.50
$113.60	+76.9%	-$77.50
$127.79	+99.0%	-$77.50

When traders use bear put spread on MAGS

Bear put spreads on MAGS reduce the cost of a bearish MAGS etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.

MAGS thesis for this bear put spread

The market-implied 1-standard-deviation range for MAGS extends from approximately $58.77 on the downside to $69.67 on the upside. A MAGS bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on MAGS, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current MAGS IV rank near 71.35% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on MAGS at 29.63%. As a Financial Services name, MAGS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAGS-specific events.

MAGS 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. MAGS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MAGS alongside the broader basket even when MAGS-specific fundamentals are unchanged. Long-premium structures like a bear put spread on MAGS 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 MAGS chain quotes before placing a trade.

Frequently asked questions

What is a bear put spread on MAGS?: A bear put spread on MAGS is the bear put spread strategy applied to MAGS (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 MAGS etf trading near $64.22, the strikes shown on this page are snapped to the nearest listed MAGS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MAGS 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 MAGS bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 29.63%), the computed maximum profit is $222.50 per contract and the computed maximum loss is -$77.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MAGS bear put spread?: The breakeven for the MAGS bear put spread priced on this page is roughly $63.23 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 MAGS market-implied 1-standard-deviation expected move is approximately 8.49%; 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 MAGS?: Bear put spreads on MAGS reduce the cost of a bearish MAGS 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 MAGS implied volatility affect this bear put spread?: MAGS ATM IV is at 29.63% with IV rank near 71.35%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.