UST Bear Put Spread Strategy
UST (ProShares - Ultra 7-10 Year Treasury), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The ProShares Ultra 7-10 Year Treasury aims to deliver daily investment returns that effectively double the single-day performance of the ICE U.S. Treasury 7-10 Year Bond Index, all before accounting for any associated fees and operational costs.
UST (ProShares - Ultra 7-10 Year Treasury) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $15.2M, a beta of 2.34 versus the broader market, a 52-week range of 41.13-45.43, average daily share volume of 8K, a public-listing history dating back to 2010. These structural characteristics shape how UST etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.34 indicates UST has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UST 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 UST?
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 UST snapshot
As of June 29, 2026, spot at $42.69, ATM IV 9.70%, IV rank 3.50%, expected move 2.78%. The bear put spread on UST 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 18-day expiry.
Why this bear put spread structure on UST specifically: UST IV at 9.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a UST bear put spread, with a market-implied 1-standard-deviation move of approximately 2.78% (roughly $1.19 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UST expiries trade a higher absolute premium for lower per-day decay. Position sizing on UST should anchor to the underlying notional of $42.69 per share and to the trader's directional view on UST etf.
UST bear put spread setup
The UST 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 UST near $42.69, the first option leg uses a $42.69 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UST chain at a 18-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 UST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $42.69 | N/A |
| Sell 1 | Put | $40.56 | N/A |
UST bear put spread risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
UST bear put spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bear put spread on UST. 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.
When traders use bear put spread on UST
Bear put spreads on UST reduce the cost of a bearish UST etf position by selling a lower-strike put; suited to moderate-decline theses where price reaches but does not vastly exceed the short strike.
UST thesis for this bear put spread
The market-implied 1-standard-deviation range for UST extends from approximately $41.50 on the downside to $43.88 on the upside. A UST bear put spread caps both the risk and the reward of a bearish position; relative to an outright long put on UST, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current UST IV rank near 3.50% 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 UST at 9.70%. As a Financial Services name, UST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UST-specific events.
UST 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. UST positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UST alongside the broader basket even when UST-specific fundamentals are unchanged. Long-premium structures like a bear put spread on UST 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 UST chain quotes before placing a trade.
Frequently asked questions
- What is a bear put spread on UST?
- A bear put spread on UST is the bear put spread strategy applied to UST (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 UST etf trading near $42.69, the strikes shown on this page are snapped to the nearest listed UST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UST 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 UST bear put spread priced from the end-of-day chain at a 30-day expiry (ATM IV 9.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UST bear put spread?
- The breakeven for the UST bear put spread priced on this page is no defined breakeven on the modeled curve 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 UST market-implied 1-standard-deviation expected move is approximately 2.78%; 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 UST?
- Bear put spreads on UST reduce the cost of a bearish UST 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 UST implied volatility affect this bear put spread?
- UST ATM IV is at 9.70% with IV rank near 3.50%, 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.