DRAM Short Put — Aug 21, 2026
Trade Setup
Current Stock Price
$53.20
Entry Price
$152.50
Target Price
$76.25
Stop Loss
$305.00
Expiration
Aug 21, 2026
Suggested Contracts
1
Strike Details
Sell 42P
Risk / Reward
Max Loss
$4047.50
Max Profit
$152.50
Analysis
DRAM (Roundhill Memory ETF) presents a short put opportunity with very elevated implied volatility. IV Rank 90. This setup favors net premium sellers.
Sell the $42 put for $1.52 credit. Naked single-leg exposure; collect premium from time decay if DRAM stays above the strike. Underlying ~$53.85, 28 DTE. Max profit $153 per contract, max loss $4048, 3.8% return on risk, 85% POP. Breakeven at $40.48.
Management: take profit at ~50% of max profit ($76). Cut at 2x credit ($305 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.
Setup Instructions
Underlying: DRAM @ ~$54.25 Expiration: Aug 21, 2026 (28 DTE) Net credit (entry): ~$152.50 per spread Legs:
- Sell DRAM Aug 21, 2026 $42 Put (delta -0.15, mid $1.52)
Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~9.8% of mid) before sending.
Management Plan
Take profit at 50% of max profit ($76). Cut loss if position reaches 2x credit received ($305 loss). Roll if tested with > 14 DTE remaining.