SCJ Bear Put Spread Strategy
SCJ (iShares MSCI Japan Small-Cap ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
The iShares MSCI Japan Small-Cap ETF (SCJ) is designed to replicate the investment performance of a specific market benchmark. This index exclusively comprises shares of smaller Japanese companies.
SCJ (iShares MSCI Japan Small-Cap ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $198.5M, a beta of 0.83 versus the broader market, a 52-week range of 88.08-110.85, average daily share volume of 48K, a public-listing history dating back to 2007. These structural characteristics shape how SCJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.83 places SCJ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SCJ 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 SCJ?
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.
SCJ snapshot
As of August 14, 2026, spot at $112.14, ATM IV 22.20%, IV rank 18.19%, expected move 6.36%. The bear put spread on SCJ below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this bear put spread structure on SCJ specifically: SCJ IV at 22.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a SCJ bear put spread, with a market-implied 1-standard-deviation move of approximately 6.36% (roughly $7.14 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SCJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on SCJ should anchor to the underlying notional of $112.14 per share and to the trader's directional view on SCJ etf.
SCJ bear put spread setup
The SCJ bear put spread below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SCJ at $112.14 on that close, the first option leg uses a $110.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SCJ chain at a 35-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 SCJ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $110.00 | $2.00 |
| Sell 1 | Put | $105.00 | $0.67 |
SCJ bear put spread risk and reward
- Net Premium / Debit
- -$133.00
- Max Profit (per contract)
- $367.00
- Max Loss (per contract)
- -$133.00
- Breakeven(s)
- $108.67
- Risk / Reward Ratio
- 2.759
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.
SCJ bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on SCJ. 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% | +$367.00 |
| $24.80 | -77.9% | +$367.00 |
| $49.60 | -55.8% | +$367.00 |
| $74.39 | -33.7% | +$367.00 |
| $99.18 | -11.6% | +$367.00 |
| $123.98 | +10.6% | -$133.00 |
| $148.77 | +32.7% | -$133.00 |
| $173.57 | +54.8% | -$133.00 |
| $198.36 | +76.9% | -$133.00 |
| $223.15 | +99.0% | -$133.00 |
When traders use bear put spread on SCJ
Bear put spreads on SCJ reduce the cost of a bearish SCJ etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
SCJ thesis for this bear put spread
The market-implied 1-standard-deviation range for SCJ extends from approximately $105.00 on the downside to $119.28 on the upside. A SCJ bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on SCJ, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current SCJ IV rank near 18.19% 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 SCJ at 22.20%. As a Financial Services name, SCJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SCJ-specific events.
SCJ 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. SCJ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SCJ alongside the broader basket even when SCJ-specific fundamentals are unchanged. Long-premium structures like a bear put spread on SCJ 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 SCJ chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on SCJ?
- A bear put spread on SCJ is the bear put spread strategy applied to SCJ (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 SCJ etf at $112.14 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SCJ chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are SCJ 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 SCJ bear put spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 22.20%), the computed maximum profit is $367.00 per contract and the computed maximum loss is -$133.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SCJ bear put spread?
- The breakeven for the SCJ bear put spread priced on this page is roughly $108.67 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The SCJ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.36%; 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 SCJ?
- Bear put spreads on SCJ reduce the cost of a bearish SCJ 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 SCJ implied volatility affect this bear put spread?
- SCJ ATM IV is at 22.20% with IV rank near 18.19%, 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.