SOXS Short Put — Nov 20, 2026
Trade Setup
Current Stock Price
$752.50
Entry Price
$752.50
Target Price
$376.25
Stop Loss
$1505.00
Expiration
Nov 20, 2026
Suggested Contracts
1
Strike Details
Sell 35P
Risk / Reward
Max Loss
$2747.50
Max Profit
$752.50
Analysis
SOXS (Direxion Daily Semiconductor Bear 3X ETF) presents a short put opportunity with very elevated implied volatility. IV Rank 83. IV 11352.0% trades 43.0pp above 30-day HV (11309.0%). This setup favors net premium sellers.
Sell the $35 put for $7.53 credit. Naked single-leg exposure; collect premium from time decay if SOXS stays above the strike. Underlying ~$48.50, 50 DTE. Max profit $753 per contract, max loss $2748, 27.4% return on risk, 79% POP. Breakeven at $27.48.
Management: take profit at ~50% of max profit ($376). Cut at 2x credit ($1505 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: SOXS @ ~$48.50 Expiration: Nov 20, 2026 (50 DTE) Net credit (entry): ~$752.50 per spread Legs:
- Sell SOXS Nov 20, 2026 $35 Put (delta -0.21, mid $7.53)
Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~11.3% of mid) before sending.
Management Plan
Take profit at 50% of max profit ($376). Cut loss if position reaches 2x credit received ($1505 loss). Roll if tested with > 14 DTE remaining.