How are TUA 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 TUA bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 8.20%), the computed maximum profit is $32.50 per contract and the computed maximum loss is -$67.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TUA bear put spread?

The breakeven for the TUA bear put spread priced on this page is roughly $20.33 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 TUA market-implied 1-standard-deviation expected move is approximately 2.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TUA implied volatility affect this bear put spread?

TUA ATM IV is at 8.20% with IV rank near 1.53%, 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.

TUA Bear Put Spread Strategy

TUA (Simplify Short Term Treasury Futures Strategy ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.

The Simplify Short Term Treasury Futures Strategy ETF (TUA) seeks to provide total return, before fees and expenses, that matches or outperforms the performance of the ICE US Treasury 7-10 Year Bond Index on a calendar quarter basis. The Fund does not seek to achieve its stated investment objective over a period of time different than a full calendar quarter. The fund looks to target the duration of the ICE 7-10 Year US Treasury Index by investing in Treasury futures at the short end of the curve. The fund is designed to provide significant duration from only a modest capital allocation while simultaneously attempting to harvest yield curve efficiencies from the short end of the curve using 2-Year US Treasury futures contracts. The fund can be used as a replacement for less efficient intermediate duration holdings, as a means of increasing capital efficiency of shorter duration portfolio allocations, or as a building block within innovative portfolio solutions such as risk parity.

TUA (Simplify Short Term Treasury Futures Strategy ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $682.4M, a beta of 1.32 versus the broader market, a 52-week range of 20.66-22.305, average daily share volume of 533K, a public-listing history dating back to 2022. These structural characteristics shape how TUA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.32 indicates TUA has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TUA 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 TUA?

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 TUA snapshot

As of May 15, 2026, spot at $20.55, ATM IV 8.20%, IV rank 1.53%, expected move 2.35%. The bear put spread on TUA 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 TUA specifically: TUA IV at 8.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a TUA bear put spread, with a market-implied 1-standard-deviation move of approximately 2.35% (roughly $0.48 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 TUA expiries trade a higher absolute premium for lower per-day decay. Position sizing on TUA should anchor to the underlying notional of $20.55 per share and to the trader's directional view on TUA etf.

TUA bear put spread setup

The TUA 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 TUA near $20.55, 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 TUA 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 TUA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Put	$21.00	$0.93
Sell 1	Put	$20.00	$0.25

TUA bear put spread risk and reward

Net Premium / Debit: -$67.50
Max Profit (per contract): $32.50
Max Loss (per contract): -$67.50
Breakeven(s): $20.33
Risk / Reward Ratio: 0.481

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.

TUA bear put spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bear put spread on TUA. 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%	+$32.50
$4.55	-77.8%	+$32.50
$9.10	-55.7%	+$32.50
$13.64	-33.6%	+$32.50
$18.18	-11.5%	+$32.50
$22.72	+10.6%	-$67.50
$27.27	+32.7%	-$67.50
$31.81	+54.8%	-$67.50
$36.35	+76.9%	-$67.50
$40.89	+99.0%	-$67.50

When traders use bear put spread on TUA

Bear put spreads on TUA reduce the cost of a bearish TUA etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.

TUA thesis for this bear put spread

The market-implied 1-standard-deviation range for TUA extends from approximately $20.07 on the downside to $21.03 on the upside. A TUA bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on TUA, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current TUA IV rank near 1.53% 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 TUA at 8.20%. As a Financial Services name, TUA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TUA-specific events.

TUA 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. TUA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TUA alongside the broader basket even when TUA-specific fundamentals are unchanged. Long-premium structures like a bear put spread on TUA 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 TUA chain quotes before placing a trade.

Frequently asked questions

What is a bear put spread on TUA?: A bear put spread on TUA is the bear put spread strategy applied to TUA (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 TUA etf trading near $20.55, the strikes shown on this page are snapped to the nearest listed TUA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TUA 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 TUA bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 8.20%), the computed maximum profit is $32.50 per contract and the computed maximum loss is -$67.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TUA bear put spread?: The breakeven for the TUA bear put spread priced on this page is roughly $20.33 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 TUA market-implied 1-standard-deviation expected move is approximately 2.35%; 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 TUA?: Bear put spreads on TUA reduce the cost of a bearish TUA 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 TUA implied volatility affect this bear put spread?: TUA ATM IV is at 8.20% with IV rank near 1.53%, 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.