PST Cash-Secured Put Strategy
PST (ProShares UltraShort 7-10 Year Treasury), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund invests in financial instruments that ProShare Advisors believes, in combination, should produce daily returns consistent with the Daily Target. The index includes publicly-issued U.S. Treasury securities that have a remaining maturity greater than or equal to seven years and less than or equal to ten years and have $300 million or more of outstanding face value, excluding amounts held by the Federal Reserve. The fund is non-diversified.
PST (ProShares UltraShort 7-10 Year Treasury) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $11.4M, a beta of -2.35 versus the broader market, a 52-week range of 21.39-23.62, average daily share volume of 9K, a public-listing history dating back to 2008. These structural characteristics shape how PST etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -2.35 indicates PST has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. PST pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a cash-secured put on PST?
A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike.
Current PST snapshot
As of June 30, 2026, spot at $22.73, ATM IV 4.00%, IV rank 0.62%, expected move 1.15%. The cash-secured put on PST 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 17-day expiry.
Why this cash-secured put structure on PST specifically: PST IV at 4.00% is on the cheap side of its 1-year range, which means a premium-selling PST cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 1.15% (roughly $0.26 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PST expiries trade a higher absolute premium for lower per-day decay. Position sizing on PST should anchor to the underlying notional of $22.73 per share and to the trader's directional view on PST etf.
PST cash-secured put setup
The PST cash-secured 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 PST near $22.73, the first option leg uses a $22.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PST chain at a 17-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 PST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $22.00 | $0.01 |
PST cash-secured put risk and reward
- Net Premium / Debit
- +$1.00
- Max Profit (per contract)
- $1.00
- Max Loss (per contract)
- -$2,198.00
- Breakeven(s)
- $22.13
- Risk / Reward Ratio
- 0.000
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
PST cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on PST. 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% | -$2,198.00 |
| $5.03 | -77.9% | -$1,695.54 |
| $10.06 | -55.7% | -$1,193.08 |
| $15.08 | -33.6% | -$690.61 |
| $20.11 | -11.5% | -$188.15 |
| $25.13 | +10.6% | +$1.00 |
| $30.16 | +32.7% | +$1.00 |
| $35.18 | +54.8% | +$1.00 |
| $40.21 | +76.9% | +$1.00 |
| $45.23 | +99.0% | +$1.00 |
When traders use cash-secured put on PST
Cash-secured puts on PST earn premium while a trader waits to acquire PST etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PST.
PST thesis for this cash-secured put
The market-implied 1-standard-deviation range for PST extends from approximately $22.47 on the downside to $22.99 on the upside. A PST cash-secured put lets a trader earn premium while waiting to acquire PST at the strike price; the strategy is most attractive when the trader is comfortable holding the underlying at that level and IV is rich enough to compensate for the assignment risk. Current PST IV rank near 0.62% 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 PST at 4.00%. As a Financial Services name, PST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PST-specific events.
PST cash-secured put positions are structurally neutral to slightly bullish; 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. PST positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PST alongside the broader basket even when PST-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on PST carry tail risk when realized volatility exceeds the implied move; review historical PST earnings reactions and macro stress periods before sizing. Always rebuild the position from current PST chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on PST?
- A cash-secured put on PST is the cash-secured put strategy applied to PST (etf). The strategy is structurally neutral to slightly bullish: A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike. With PST etf trading near $22.73, the strikes shown on this page are snapped to the nearest listed PST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PST cash-secured put max profit and max loss calculated?
- Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium. For the PST cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 4.00%), the computed maximum profit is $1.00 per contract and the computed maximum loss is -$2,198.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PST cash-secured put?
- The breakeven for the PST cash-secured put priced on this page is roughly $22.13 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 PST market-implied 1-standard-deviation expected move is approximately 1.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a cash-secured put on PST?
- Cash-secured puts on PST earn premium while a trader waits to acquire PST etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning PST.
- How does current PST implied volatility affect this cash-secured put?
- PST ATM IV is at 4.00% with IV rank near 0.62%, 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.