How are SDP 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 SDP cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 36.90%), the computed maximum profit is $40.00 per contract and the computed maximum loss is -$2,059.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SDP cash-secured put?

The breakeven for the SDP cash-secured put priced on this page is roughly $20.60 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 SDP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.58%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SDP implied volatility affect this cash-secured put?

SDP ATM IV is at 36.90% with IV rank near 4.61%, 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.

SDP Cash-Secured Put Strategy

SDP (ProShares - UltraShort Utilities), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.

ProShares UltraShort Utilities is structured to produce daily investment outcomes that are twice the inverse (-2x) of the S&P Utilities Select SectorSM Index's daily performance, calculated prior to the subtraction of fees and operational costs.

SDP (ProShares - UltraShort Utilities) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $4.2M, a beta of -0.79 versus the broader market, a 52-week range of 19.78-27.82, average daily share volume of 4K, a public-listing history dating back to 2007. These structural characteristics shape how SDP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.79 indicates SDP has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SDP 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 SDP?

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.

SDP snapshot

As of August 14, 2026, spot at $22.55, ATM IV 36.90%, IV rank 4.61%, expected move 10.58%. The cash-secured put on SDP 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 cash-secured put structure on SDP specifically: SDP IV at 36.90% is on the cheap side of its 1-year range, which means a premium-selling SDP cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 10.58% (roughly $2.39 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 SDP expiries trade a higher absolute premium for lower per-day decay. Position sizing on SDP should anchor to the underlying notional of $22.55 per share and to the trader's directional view on SDP etf.

SDP cash-secured put setup

The SDP cash-secured put 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 SDP at $22.55 on that close, the first option leg uses a $21.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SDP 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 SDP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Sell 1	Put	$21.00	$0.40

SDP cash-secured put risk and reward

Net Premium / Debit: +$40.00
Max Profit (per contract): $40.00
Max Loss (per contract): -$2,059.00
Breakeven(s): $20.60
Risk / Reward Ratio: 0.019

Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.

SDP cash-secured put payoff curve

Modeled P&L at expiration across a range of underlying prices for the cash-secured put on SDP. 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%	-$2,059.00
$4.99	-77.9%	-$1,560.52
$9.98	-55.7%	-$1,062.04
$14.96	-33.6%	-$563.55
$19.95	-11.5%	-$65.07
$24.93	+10.6%	+$40.00
$29.92	+32.7%	+$40.00
$34.90	+54.8%	+$40.00
$39.89	+76.9%	+$40.00
$44.87	+99.0%	+$40.00

When traders use cash-secured put on SDP

Cash-secured puts on SDP earn premium while a trader waits to acquire SDP etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SDP.

SDP thesis for this cash-secured put

The market-implied 1-standard-deviation range for SDP extends from approximately $20.16 on the downside to $24.94 on the upside. A SDP cash-secured put lets a trader earn premium while waiting to acquire SDP 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 SDP IV rank near 4.61% 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 SDP at 36.90%. As a Financial Services name, SDP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SDP-specific events.

SDP 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. SDP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SDP alongside the broader basket even when SDP-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on SDP carry tail risk when realized volatility exceeds the implied move; review historical SDP earnings reactions and macro stress periods before sizing. Always rebuild the position from current SDP chain quotes before placing a trade.

Frequently asked questions

What is a cash-secured put on SDP?: A cash-secured put on SDP is the cash-secured put strategy applied to SDP (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 SDP etf at $22.55 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SDP chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SDP 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 SDP cash-secured put priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 36.90%), the computed maximum profit is $40.00 per contract and the computed maximum loss is -$2,059.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SDP cash-secured put?: The breakeven for the SDP cash-secured put priced on this page is roughly $20.60 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 SDP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.58%; 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 SDP?: Cash-secured puts on SDP earn premium while a trader waits to acquire SDP etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning SDP.
How does current SDP implied volatility affect this cash-secured put?: SDP ATM IV is at 36.90% with IV rank near 4.61%, 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.