🎯 Options Strategy : Bull Put Spread

$Direxion Daily Small Cap Bear 3X Shares(TZA)$

- Underlying: TZA

- View: Cautiously optimistic for a short-term oversold bounce within a defined range, but with a clear risk of further decline.

- Strategy Type: Credit Spread / Defined Risk

- Option Contract Portfolio:

- Sell 1 TZA Put, Strike $4.50, Expiry 2026-05-22

- Buy 1 TZA Put, Strike $4.00, Expiry 2026-05-22

- Max Gain & Loss: Max Gain = Net Credit Received. Max Loss = ($4.50 - $4.00) - Net Credit.

- Initial Cost/Credit: Net Credit (Estimated ~$0.15 - $0.20 per spread).

- Greek Exposure (Simulated):

- Delta: Moderately Positive (~+0.25 to +0.35). Benefits from a price increase or stability.

- Theta: Positive (+0.002 to +0.004 per day). Profits from time decay.

- Vega: Slightly Negative (~-0.001). Minor negative exposure to a drop in IV.

- Gamma: Low Negative. Low sensitivity to large price moves near expiration.

- Rho: Negligible.

- Rationale: This strategy aligns with a "cautiously optimistic" view for a bounce off the $4.47-$4.60 support zone. It collects a net credit upfront (positive Theta) and profits if TZA closes above $4.50 at expiry. The long put at $4.00 defines and limits the maximum loss, which is crucial given the leveraged ETF's high volatility (IV ~70%). It balances positive Theta with a defined-risk, directionally bullish (positive Delta) profile.

- Time Frame: Short-Term (1 week to expiry).

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