SOXS Short Put — Nov 20, 2026
Trade Setup
Current Stock Price
$1202.50
Entry Price
$1202.50
Target Price
$601.25
Stop Loss
$2405.00
Expiration
Nov 20, 2026
Suggested Contracts
1
Strike Details
Sell 40P
Risk / Reward
Max Loss
$2797.50
Max Profit
$1202.50
Analysis
SOXS (Direxion Daily Semiconductor Bear 3X ETF) presents a short put opportunity with very elevated implied volatility. IV Rank 83. IV 10590.0% trades -490.0pp above 30-day HV (11080.0%). This setup favors net premium sellers.
Sell the $40 put for $12.03 credit. Naked single-leg exposure; collect premium from time decay if SOXS stays above the strike. Underlying ~$45.00, 46 DTE. Max profit $1203 per contract, max loss $2798, 43.0% return on risk, 79% POP. Breakeven at $27.98.
Management: take profit at ~50% of max profit ($601). Cut at 2x credit ($2405 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 @ ~$45.00 Expiration: Nov 20, 2026 (46 DTE) Net credit (entry): ~$1202.50 per spread Legs:
- Sell SOXS Nov 20, 2026 $40 Put (delta -0.21, mid $12.03)
Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~2.9% of mid) before sending.
Management Plan
Take profit at 50% of max profit ($601). Cut loss if position reaches 2x credit received ($2405 loss). Roll if tested with > 14 DTE remaining.