DVN Short Put — Nov 20, 2026

DVN (Devon Energy Corporation Common Stock) presents a short put opportunity with very elevated implied volatility. IV Rank 87. IV 4200.0% trades 1232.0pp above 30-day HV (2968.0%). This setup favors net premium sellers.

Sell the $47 put for $0.55 credit. Naked single-leg exposure; collect premium from time decay if DVN stays above the strike. Underlying ~$51.39, 25 DTE. Max profit $55 per contract, max loss $4646, 1.2% return on risk, 82% POP. Breakeven at $46.45.

Management: take profit at ~50% of max profit ($27). Cut at 2x credit ($109 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.

Underlying: DVN @ ~$51.39 Expiration: Nov 20, 2026 (25 DTE) Net credit (entry): ~$54.50 per spread Legs:

• Sell DVN Nov 20, 2026 $47 Put (delta -0.18, mid $0.55)

Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~5.5% of mid) before sending.

Take profit at 50% of max profit ($27). Cut loss if position reaches 2x credit received ($109 loss). Roll if tested with > 14 DTE remaining.