TSMG Bear Put Spread Strategy
TSMG (Leverage Shares 2x Long TSM Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Leverage Shares 2x Long TSM Daily ETF (TSMG) is a 2x Daily Leveraged (Bull) ETF designed for active traders seeking to magnify short-term results. The TSMG ETF aims to achieve two times (200%) the daily performance of TSM stock, minus fees and expenses.
TSMG (Leverage Shares 2x Long TSM Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $11.6M, a beta of 4.25 versus the broader market, a 52-week range of 11.45-41.39, average daily share volume of 112K, a public-listing history dating back to 2024. These structural characteristics shape how TSMG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.25 indicates TSMG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TSMG 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 TSMG?
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 TSMG snapshot
As of May 15, 2026, spot at $38.39, ATM IV 86.20%, IV rank 28.51%, expected move 24.71%. The bear put spread on TSMG 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 TSMG specifically: TSMG IV at 86.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a TSMG bear put spread, with a market-implied 1-standard-deviation move of approximately 24.71% (roughly $9.49 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 TSMG expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSMG should anchor to the underlying notional of $38.39 per share and to the trader's directional view on TSMG etf.
TSMG bear put spread setup
The TSMG 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 TSMG near $38.39, the first option leg uses a $37.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSMG 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 TSMG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $37.00 | $3.40 |
| Sell 1 | Put | $36.00 | $2.85 |
TSMG bear put spread risk and reward
- Net Premium / Debit
- -$55.00
- Max Profit (per contract)
- $45.00
- Max Loss (per contract)
- -$55.00
- Breakeven(s)
- $36.45
- Risk / Reward Ratio
- 0.818
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.
TSMG bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on TSMG. 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% | +$45.00 |
| $8.50 | -77.9% | +$45.00 |
| $16.98 | -55.8% | +$45.00 |
| $25.47 | -33.7% | +$45.00 |
| $33.96 | -11.5% | +$45.00 |
| $42.45 | +10.6% | -$55.00 |
| $50.93 | +32.7% | -$55.00 |
| $59.42 | +54.8% | -$55.00 |
| $67.91 | +76.9% | -$55.00 |
| $76.39 | +99.0% | -$55.00 |
When traders use bear put spread on TSMG
Bear put spreads on TSMG reduce the cost of a bearish TSMG etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
TSMG thesis for this bear put spread
The market-implied 1-standard-deviation range for TSMG extends from approximately $28.90 on the downside to $47.88 on the upside. A TSMG bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on TSMG, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current TSMG IV rank near 28.51% 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 TSMG at 86.20%. As a Financial Services name, TSMG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSMG-specific events.
TSMG 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. TSMG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TSMG alongside the broader basket even when TSMG-specific fundamentals are unchanged. Long-premium structures like a bear put spread on TSMG 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 TSMG chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on TSMG?
- A bear put spread on TSMG is the bear put spread strategy applied to TSMG (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 TSMG etf trading near $38.39, the strikes shown on this page are snapped to the nearest listed TSMG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TSMG 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 TSMG bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 86.20%), the computed maximum profit is $45.00 per contract and the computed maximum loss is -$55.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TSMG bear put spread?
- The breakeven for the TSMG bear put spread priced on this page is roughly $36.45 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 TSMG market-implied 1-standard-deviation expected move is approximately 24.71%; 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 TSMG?
- Bear put spreads on TSMG reduce the cost of a bearish TSMG 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 TSMG implied volatility affect this bear put spread?
- TSMG ATM IV is at 86.20% with IV rank near 28.51%, 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.