How are PGJ 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 PGJ bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 24.10%), the computed maximum profit is $72.50 per contract and the computed maximum loss is -$27.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PGJ bear put spread?

The breakeven for the PGJ bear put spread priced on this page is roughly $25.73 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 PGJ market-implied 1-standard-deviation expected move is approximately 6.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

PGJ ATM IV is at 24.10% with IV rank near 3.18%, 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.

PGJ Bear Put Spread Strategy

PGJ (Invesco Golden Dragon China ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

The Invesco Golden Dragon China ETF (Fund) is based on the NASDAQ Golden Dragon China Index (Index). The Fund generally will invest at least 90% of its total assets in equity securities of companies deriving a majority of their revenues from the People’s Republic of China and that comprise the Index. The Index is composed of US exchange-listed companies that are headquartered or incorporated in the People’s Republic of China. The Fund and the Index are rebalanced and reconstituted quarterly.

PGJ (Invesco Golden Dragon China ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $147.5M, a beta of 0.94 versus the broader market, a 52-week range of 25.11-34.54, average daily share volume of 21K, a public-listing history dating back to 2004. These structural characteristics shape how PGJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.94 places PGJ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PGJ 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 PGJ?

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 PGJ snapshot

As of May 15, 2026, spot at $26.47, ATM IV 24.10%, IV rank 3.18%, expected move 6.91%. The bear put spread on PGJ 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 PGJ specifically: PGJ IV at 24.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a PGJ bear put spread, with a market-implied 1-standard-deviation move of approximately 6.91% (roughly $1.83 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 PGJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on PGJ should anchor to the underlying notional of $26.47 per share and to the trader's directional view on PGJ etf.

PGJ bear put spread setup

The PGJ 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 PGJ near $26.47, the first option leg uses a $26.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PGJ 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 PGJ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$26.00	$0.48
Sell 1	Put	$25.00	$0.20

PGJ bear put spread risk and reward

Net Premium / Debit: -$27.50
Max Profit (per contract): $72.50
Max Loss (per contract): -$27.50
Breakeven(s): $25.73
Risk / Reward Ratio: 2.636

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.

PGJ bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on PGJ. 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%	+$72.50
$5.86	-77.9%	+$72.50
$11.71	-55.7%	+$72.50
$17.56	-33.6%	+$72.50
$23.42	-11.5%	+$72.50
$29.27	+10.6%	-$27.50
$35.12	+32.7%	-$27.50
$40.97	+54.8%	-$27.50
$46.82	+76.9%	-$27.50
$52.67	+99.0%	-$27.50

When traders use bear put spread on PGJ

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

PGJ thesis for this bear put spread

The market-implied 1-standard-deviation range for PGJ extends from approximately $24.64 on the downside to $28.30 on the upside. A PGJ bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on PGJ, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current PGJ IV rank near 3.18% 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 PGJ at 24.10%. As a Financial Services name, PGJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PGJ-specific events.

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

Frequently asked questions

What is a bear put spread on PGJ?: A bear put spread on PGJ is the bear put spread strategy applied to PGJ (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 PGJ etf trading near $26.47, the strikes shown on this page are snapped to the nearest listed PGJ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PGJ 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 PGJ bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 24.10%), the computed maximum profit is $72.50 per contract and the computed maximum loss is -$27.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PGJ bear put spread?: The breakeven for the PGJ bear put spread priced on this page is roughly $25.73 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 PGJ market-implied 1-standard-deviation expected move is approximately 6.91%; 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 PGJ?: Bear put spreads on PGJ reduce the cost of a bearish PGJ 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 PGJ implied volatility affect this bear put spread?: PGJ ATM IV is at 24.10% with IV rank near 3.18%, 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.