ADAM Cash-Secured Put Strategy
ADAM (Adamas Trust, Inc.), in the Real Estate sector, (REIT - Mortgage industry), listed on NASDAQ.
Adamas Trust, Inc. is a U.S.-based entity primarily focused on the acquisition, investment, financing, and management of assets connected to single-family and multi-family residential mortgages. Its diverse portfolio includes targeted residential loans (which cover business purpose loans), agency and non-agency residential mortgage-backed securities (RMBS), structured multi-family property investments like preferred equity and mezzanine loans to property owners, and other assets related to mortgages, housing, and credit, along with strategic investments and commercial mortgage-backed securities (CMBS). Furthermore, the company extends its operations to owning and managing single-family rental properties. Qualifying as a Real Estate Investment Trust (REIT) for federal income tax purposes, Adamas Trust avoids federal corporate income taxes, provided it distributes a minimum of 90% of its taxable earnings to its stockholders. Established in 2003, the company's headquarters are located in New York, New York. It was formerly known as New York Mortgage Trust, Inc. until it officially changed its name to Adamas Trust, Inc. in September 2025.
ADAM (Adamas Trust, Inc.) trades in the Real Estate sector, specifically REIT - Mortgage, with a market capitalization of approximately $854.6M, a trailing P/E of 5.53, a beta of 1.25 versus the broader market, a 52-week range of 6.16-9.55, average daily share volume of 784K, a public-listing history dating back to 2025, approximately 70 full-time employees. These structural characteristics shape how ADAM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.25 places ADAM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 5.53 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. ADAM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a cash-secured put on ADAM?
A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike.
Current ADAM snapshot
As of June 30, 2026, spot at $9.48, ATM IV 33.60%, IV rank 7.51%, expected move 9.63%. The cash-secured put on ADAM 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 17-day expiry.
Why this cash-secured put structure on ADAM specifically: ADAM IV at 33.60% is on the cheap side of its 1-year range, which means a premium-selling ADAM cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 9.63% (roughly $0.91 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ADAM expiries trade a higher absolute premium for lower per-day decay. Position sizing on ADAM should anchor to the underlying notional of $9.48 per share and to the trader's directional view on ADAM stock.
ADAM cash-secured put setup
The ADAM cash-secured 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 ADAM near $9.48, the first option leg uses a $9.01 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ADAM chain at a 17-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 ADAM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $9.01 | N/A |
ADAM cash-secured put risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium.
ADAM cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on ADAM. 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.
When traders use cash-secured put on ADAM
Cash-secured puts on ADAM earn premium while a trader waits to acquire ADAM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ADAM.
ADAM thesis for this cash-secured put
The market-implied 1-standard-deviation range for ADAM extends from approximately $8.57 on the downside to $10.39 on the upside. A ADAM cash-secured put lets a trader earn premium while waiting to acquire ADAM at the strike price; the strategy is most attractive when the trader is comfortable holding the underlying at that level and IV is rich enough to compensate for the assignment risk. Current ADAM IV rank near 7.51% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on ADAM at 33.60%. As a Real Estate name, ADAM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ADAM-specific events.
ADAM cash-secured put positions are structurally neutral to slightly bullish; 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. ADAM positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ADAM alongside the broader basket even when ADAM-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on ADAM carry tail risk when realized volatility exceeds the implied move; review historical ADAM earnings reactions and macro stress periods before sizing. Always rebuild the position from current ADAM chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on ADAM?
- A cash-secured put on ADAM is the cash-secured put strategy applied to ADAM (stock). The strategy is structurally neutral to slightly bullish: A cash-secured put sells an out-of-the-money put while holding cash equal to the strike-times-100 obligation, keeping the premium when the underlying stays above the strike. With ADAM stock trading near $9.48, the strikes shown on this page are snapped to the nearest listed ADAM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ADAM cash-secured put max profit and max loss calculated?
- Max profit equals premium times 100; max loss equals strike minus premium times 100 (at zero, assuming assignment). Breakeven is strike minus premium. For the ADAM cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 33.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ADAM cash-secured put?
- The breakeven for the ADAM cash-secured put priced on this page is no defined breakeven on the modeled curve 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 ADAM market-implied 1-standard-deviation expected move is approximately 9.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a cash-secured put on ADAM?
- Cash-secured puts on ADAM earn premium while a trader waits to acquire ADAM stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning ADAM.
- How does current ADAM implied volatility affect this cash-secured put?
- ADAM ATM IV is at 33.60% with IV rank near 7.51%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.