> For the complete documentation index, see [llms.txt](https://ethosx.gitbook.io/operps/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ethosx.gitbook.io/operps/types-of-operps/spo.md).

# SPO

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Short PUT OPerps a.k.a. SPO tokens represent selling of PUT options and are profitable in neutral or rising markets. SPO holders receive premium from LPO holders in every [settlement cycle](/operps/settlement.md) in return for enabling leveraged exposure to price fall for LPO holders. In following example, <mark style="color:yellow;">SPO holders make 0.5% profit in just 5 minutes\*</mark>.

> Token holdings are automatically rolled over to the next cycle unless sold

| Variable Name                 | Value                                 |
| ----------------------------- | ------------------------------------- |
| Long PUT OPerps Token Supply  | 100                                   |
| Short PUT OPerps Token Supply | 10000                                 |
| Leverage                      | 100                                   |
| Premium (per cycle)           | 50%\*                                 |
| Cycle Duration                | 5 minutes\*                           |
| Underlying Price Change       | <mark style="color:green;">+ve</mark> |

50  (50% of LPO supply i.e. 100) Tokens are transferred from LPO to SPO pool as Premium.\
No Tokens are transferred from SPO to LPO pool because market didn't fall duting the cycle.

<figure><img src="/files/1bcZkGAnOB7sZumGKQfQ" alt=""><figcaption><p>SPO holders gain 0.5% in just 5 minutes*</p></figcaption></figure>

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Premium and cycle duration values used in this example are meant for our Arbitrum products. On Binance chain, these values are different.
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