TSMU Long Put Strategy
TSMU (GraniteShares 2x Long TSM Daily ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.
This Fund is engineered to capture daily investment results mirroring 200% (or double) the daily percentage change in the common stock of Taiwan Semiconductor Manufacturing Co Ltd (TSM), exclusive of fees and expenses. However, success in achieving this stated objective cannot be guaranteed. Crucially, the fund is not intended to provide twice the cumulative return of TSM over periods longer than a single trading day.
TSMU (GraniteShares 2x Long TSM Daily ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $35.0M, a beta of 3.61 versus the broader market, a 52-week range of 25.973-93.29, average daily share volume of 101K, a public-listing history dating back to 2024. These structural characteristics shape how TSMU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.61 indicates TSMU has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a long put on TSMU?
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 TSMU snapshot
As of June 30, 2026, spot at $91.71, ATM IV 107.00%, IV rank 55.37%, expected move 30.68%. The long put on TSMU 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 long put structure on TSMU specifically: TSMU IV at 107.00% 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 30.68% (roughly $28.13 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 TSMU expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSMU should anchor to the underlying notional of $91.71 per share and to the trader's directional view on TSMU etf.
TSMU long put setup
The TSMU 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 TSMU near $91.71, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSMU 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 TSMU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $90.00 | $8.20 |
TSMU long put risk and reward
- Net Premium / Debit
- -$820.00
- Max Profit (per contract)
- $8,179.00
- Max Loss (per contract)
- -$820.00
- Breakeven(s)
- $81.80
- Risk / Reward Ratio
- 9.974
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
TSMU long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on TSMU. 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% | +$8,179.00 |
| $20.29 | -77.9% | +$6,151.35 |
| $40.56 | -55.8% | +$4,123.70 |
| $60.84 | -33.7% | +$2,096.06 |
| $81.12 | -11.6% | +$68.41 |
| $101.39 | +10.6% | -$820.00 |
| $121.67 | +32.7% | -$820.00 |
| $141.95 | +54.8% | -$820.00 |
| $162.22 | +76.9% | -$820.00 |
| $182.50 | +99.0% | -$820.00 |
When traders use long put on TSMU
Long puts on TSMU hedge an existing long TSMU etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying TSMU exposure being hedged.
TSMU thesis for this long put
The market-implied 1-standard-deviation range for TSMU extends from approximately $63.58 on the downside to $119.84 on the upside. A TSMU long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long TSMU position with one put per 100 shares held. Current TSMU IV rank near 55.37% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on TSMU should anchor more to the directional view and the expected-move geometry. As a Financial Services name, TSMU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSMU-specific events.
TSMU 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. TSMU positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TSMU alongside the broader basket even when TSMU-specific fundamentals are unchanged. Long-premium structures like a long put on TSMU 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 TSMU chain quotes before placing a trade.
Frequently asked questions
- What is a long put on TSMU?
- A long put on TSMU is the long put strategy applied to TSMU (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 TSMU etf trading near $91.71, the strikes shown on this page are snapped to the nearest listed TSMU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TSMU 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 TSMU long put priced from the end-of-day chain at a 30-day expiry (ATM IV 107.00%), the computed maximum profit is $8,179.00 per contract and the computed maximum loss is -$820.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TSMU long put?
- The breakeven for the TSMU long put priced on this page is roughly $81.80 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 TSMU market-implied 1-standard-deviation expected move is approximately 30.68%; 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 TSMU?
- Long puts on TSMU hedge an existing long TSMU etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying TSMU exposure being hedged.
- How does current TSMU implied volatility affect this long put?
- TSMU ATM IV is at 107.00% with IV rank near 55.37%, 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.