UST Cash-Secured Put Strategy
UST (ProShares - Ultra 7-10 Year Treasury), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares Ultra 7-10 Year Treasury seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the ICE U.S. Treasury 7-10 Year Bond Index.
UST (ProShares - Ultra 7-10 Year Treasury) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $15.4M, a beta of 2.34 versus the broader market, a 52-week range of 40.79-45.43, average daily share volume of 21K, 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 cash-secured put on UST?
A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike.
Current UST snapshot
As of May 15, 2026, spot at $41.58, ATM IV 13.00%, IV rank 12.04%, expected move 3.73%. The cash-secured put 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 34-day expiry.
Why this cash-secured put structure on UST specifically: UST IV at 13.00% is on the cheap side of its 1-year range, which means a premium-selling UST cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 3.73% (roughly $1.55 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 UST expiries trade a higher absolute premium for lower per-day decay. Position sizing on UST should anchor to the underlying notional of $41.58 per share and to the trader's directional view on UST etf.
UST cash-secured put setup
The UST cash-secured 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 UST near $41.58, the first option leg uses a $39.50 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 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 UST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $39.50 | N/A |
UST cash-secured put 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 premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
UST cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put 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 cash-secured put on UST
Cash-secured puts on UST earn premium while a trader waits to acquire UST etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning UST.
UST thesis for this cash-secured put
The market-implied 1-standard-deviation range for UST extends from approximately $40.03 on the downside to $43.13 on the upside. A UST cash-secured put lets a trader earn premium while waiting to acquire UST at the strike price; the strategy is most attractive when the trader is comfortable holding the underlying at that level and IV is rich enough to compensate for the assignment risk. Current UST IV rank near 12.04% 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 13.00%. 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 cash-secured put positions are structurally neutral to slightly bullish; 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. Short-premium structures like a cash-secured put on UST carry tail risk when realized volatility exceeds the implied move; review historical UST earnings reactions and macro stress periods before sizing. Always rebuild the position from current UST chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on UST?
- A cash-secured put on UST is the cash-secured put strategy applied to UST (etf). The strategy is structurally neutral to slightly bullish: A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike. With UST etf trading near $41.58, 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 cash-secured put max profit and max loss calculated?
- Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium. For the UST cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 13.00%), 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 cash-secured put?
- The breakeven for the UST cash-secured put 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 3.73%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a cash-secured put on UST?
- Cash-secured puts on UST earn premium while a trader waits to acquire UST etf at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning UST.
- How does current UST implied volatility affect this cash-secured put?
- UST ATM IV is at 13.00% with IV rank near 12.04%, 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.