SGDM Long Put Strategy
SGDM (Sprott Gold Miners ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The underlying index aims to track the performance of gold companies located in the U.S. and Canada whose common stocks or American Depositary Receipts ("ADRs") are traded on the Toronto Stock Exchange, the New York Stock Exchange and NASDAQ. The fund will normally invest at least 90% of its net assets in securities that comprise the index. The fund is non-diversified.
SGDM (Sprott Gold Miners ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $654.3M, a beta of 0.61 versus the broader market, a 52-week range of 38.27-96.5, average daily share volume of 78K, a public-listing history dating back to 2014. These structural characteristics shape how SGDM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.61 indicates SGDM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SGDM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a long put on SGDM?
A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.
Current SGDM snapshot
As of May 15, 2026, spot at $72.78, ATM IV 44.00%, IV rank 36.13%, expected move 12.61%. The long put on SGDM 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 long put structure on SGDM specifically: SGDM IV at 44.00% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 12.61% (roughly $9.18 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 SGDM expiries trade a higher absolute premium for lower per-day decay. Position sizing on SGDM should anchor to the underlying notional of $72.78 per share and to the trader's directional view on SGDM etf.
SGDM long put setup
The SGDM long 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 SGDM near $72.78, the first option leg uses a $73.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SGDM 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 SGDM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $73.00 | $4.05 |
SGDM long put risk and reward
- Net Premium / Debit
- -$405.00
- Max Profit (per contract)
- $6,894.00
- Max Loss (per contract)
- -$405.00
- Breakeven(s)
- $68.95
- Risk / Reward Ratio
- 17.022
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
SGDM long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on SGDM. 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% | +$6,894.00 |
| $16.10 | -77.9% | +$5,284.90 |
| $32.19 | -55.8% | +$3,675.81 |
| $48.28 | -33.7% | +$2,066.71 |
| $64.37 | -11.6% | +$457.62 |
| $80.46 | +10.6% | -$405.00 |
| $96.56 | +32.7% | -$405.00 |
| $112.65 | +54.8% | -$405.00 |
| $128.74 | +76.9% | -$405.00 |
| $144.83 | +99.0% | -$405.00 |
When traders use long put on SGDM
Long puts on SGDM hedge an existing long SGDM etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying SGDM exposure being hedged.
SGDM thesis for this long put
The market-implied 1-standard-deviation range for SGDM extends from approximately $63.60 on the downside to $81.96 on the upside. A SGDM long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long SGDM position with one put per 100 shares held. Current SGDM IV rank near 36.13% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on SGDM should anchor more to the directional view and the expected-move geometry. As a Financial Services name, SGDM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SGDM-specific events.
SGDM long put positions are structurally 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. SGDM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SGDM alongside the broader basket even when SGDM-specific fundamentals are unchanged. Long-premium structures like a long put on SGDM 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 SGDM chain quotes before placing a trade.
Frequently asked questions
- What is a long put on SGDM?
- A long put on SGDM is the long put strategy applied to SGDM (etf). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. With SGDM etf trading near $72.78, the strikes shown on this page are snapped to the nearest listed SGDM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SGDM long put max profit and max loss calculated?
- Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the SGDM long put priced from the end-of-day chain at a 30-day expiry (ATM IV 44.00%), the computed maximum profit is $6,894.00 per contract and the computed maximum loss is -$405.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SGDM long put?
- The breakeven for the SGDM long put priced on this page is roughly $68.95 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 SGDM market-implied 1-standard-deviation expected move is approximately 12.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long put on SGDM?
- Long puts on SGDM hedge an existing long SGDM etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying SGDM exposure being hedged.
- How does current SGDM implied volatility affect this long put?
- SGDM ATM IV is at 44.00% with IV rank near 36.13%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.