MEME Long Put Strategy
MEME (Roundhill Investments - Meme Stock ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
A distinctive phenomenon in contemporary financial markets, meme stocks are characterized by their susceptibility to extreme price volatility, often driven by the collective action of individual investors and swift shifts in public sentiment. The Roundhill Meme Stock ETF (MEME) holds a singular position as the world's only exchange-traded fund engineered to provide focused investment exposure specifically to meme stocks, and it is actively managed.
MEME (Roundhill Investments - Meme Stock ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $640,246, a beta of 3.72 versus the broader market, a 52-week range of 5.325-11.91, average daily share volume of 235K, a public-listing history dating back to 2021. These structural characteristics shape how MEME etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.72 indicates MEME has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a long put on MEME?
A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration.
Current MEME snapshot
As of June 29, 2026, spot at $9.39, ATM IV 421.10%, IV rank 100.00%, expected move 120.73%. The long put on MEME below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 18-day expiry.
Why this long put structure on MEME specifically: MEME IV at 421.10% is rich versus its 1-year range, which makes a premium-buying MEME long put relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 120.73% (roughly $11.34 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MEME expiries trade a higher absolute premium for lower per-day decay. Position sizing on MEME should anchor to the underlying notional of $9.39 per share and to the trader's directional view on MEME etf.
MEME long put setup
The MEME long put below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With MEME near $9.39, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MEME chain at a 18-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 MEME shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $9.00 | $0.53 |
MEME long put risk and reward
- Net Premium / Debit
- -$52.50
- Max Profit (per contract)
- $846.50
- Max Loss (per contract)
- -$52.50
- Breakeven(s)
- $8.48
- Risk / Reward Ratio
- 16.124
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
MEME long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on MEME. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | +$846.50 |
| $2.09 | -77.8% | +$638.99 |
| $4.16 | -55.7% | +$431.48 |
| $6.24 | -33.6% | +$223.98 |
| $8.31 | -11.5% | +$16.47 |
| $10.39 | +10.6% | -$52.50 |
| $12.46 | +32.7% | -$52.50 |
| $14.54 | +54.8% | -$52.50 |
| $16.61 | +76.9% | -$52.50 |
| $18.69 | +99.0% | -$52.50 |
When traders use long put on MEME
Long puts on MEME hedge an existing long MEME etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying MEME exposure being hedged.
MEME thesis for this long put
The market-implied 1-standard-deviation range for MEME extends from approximately $-1.95 on the downside to $20.73 on the upside. A MEME long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long MEME position with one put per 100 shares held. Current MEME IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on MEME at 421.10%. As a Financial Services name, MEME options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MEME-specific events.
MEME long put positions are structurally bearish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. MEME positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MEME alongside the broader basket even when MEME-specific fundamentals are unchanged. Long-premium structures like a long put on MEME are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current MEME chain quotes before placing a trade.
Frequently asked questions
- What is a long put on MEME?
- A long put on MEME is the long put strategy applied to MEME (etf). The strategy is structurally bearish: A long put buys downside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes below the strike minus premium at expiration. With MEME etf trading near $9.39, the strikes shown on this page are snapped to the nearest listed MEME chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MEME long put max profit and max loss calculated?
- Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium. For the MEME long put priced from the end-of-day chain at a 30-day expiry (ATM IV 421.10%), the computed maximum profit is $846.50 per contract and the computed maximum loss is -$52.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MEME long put?
- The breakeven for the MEME long put priced on this page is roughly $8.48 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current MEME market-implied 1-standard-deviation expected move is approximately 120.73%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a long put on MEME?
- Long puts on MEME hedge an existing long MEME etf position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying MEME exposure being hedged.
- How does current MEME implied volatility affect this long put?
- MEME ATM IV is at 421.10% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.