DMAC Cash-Secured Put Strategy
DMAC (DiaMedica Therapeutics Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
DiaMedica Therapeutics Inc. operates as a clinical-stage biopharmaceutical entity dedicated to advancing therapeutic solutions for neurological and renal disorders. Its primary drug candidate, DM199, a recombinant human tissue kallikrein-1 protein, is currently undergoing a Phase 2 REDUX trial to assess its efficacy in treating moderate to severe chronic kidney disease linked to Type 1 or Type 2 diabetes. Furthermore, DM199 is being evaluated in Phase 2/3 REMEDY2 trials for acute ischemic stroke patients. In addition to DM199, the company is also developing DM300, which is in its pre-clinical stage for the treatment of various inflammatory conditions. Founded in 2000 and headquartered in Minneapolis, Minnesota, the company was previously known as DiaMedica Inc. before adopting its current name, DiaMedica Therapeutics Inc., in December 2016.
DMAC (DiaMedica Therapeutics Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $368.6M, a beta of 0.97 versus the broader market, a 52-week range of 5.14-10.4195, average daily share volume of 196K, a public-listing history dating back to 2012, approximately 35 full-time employees. These structural characteristics shape how DMAC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.97 places DMAC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a cash-secured put on DMAC?
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.
DMAC snapshot
As of August 14, 2026, spot at $6.73, ATM IV 114.10%, IV rank 23.57%, expected move 32.71%. The cash-secured put on DMAC below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this cash-secured put structure on DMAC specifically: DMAC IV at 114.10% is on the cheap side of its 1-year range, which means a premium-selling DMAC cash-secured put collects less credit per unit of strike-width risk, with a market-implied 1-standard-deviation move of approximately 32.71% (roughly $2.20 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DMAC expiries trade a higher absolute premium for lower per-day decay. Position sizing on DMAC should anchor to the underlying notional of $6.73 per share and to the trader's directional view on DMAC stock.
DMAC cash-secured put setup
The DMAC 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 DMAC at $6.73 on that close, the first option leg uses a $6.39 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DMAC chain at a 35-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 DMAC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Sell 1 | Put | $6.39 | N/A |
DMAC 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.
DMAC cash-secured put payoff curve
Modeled P&L at expiration across a range of underlying prices for the cash-secured put on DMAC. 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 DMAC
Cash-secured puts on DMAC earn premium while a trader waits to acquire DMAC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning DMAC.
DMAC thesis for this cash-secured put
The market-implied 1-standard-deviation range for DMAC extends from approximately $4.53 on the downside to $8.93 on the upside. A DMAC cash-secured put lets a trader earn premium while waiting to acquire DMAC 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 DMAC IV rank near 23.57% 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 DMAC at 114.10%. As a Healthcare name, DMAC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DMAC-specific events.
DMAC 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. DMAC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DMAC alongside the broader basket even when DMAC-specific fundamentals are unchanged. Short-premium structures like a cash-secured put on DMAC carry tail risk when realized volatility exceeds the implied move; review historical DMAC earnings reactions and macro stress periods before sizing. Always rebuild the position from current DMAC chain quotes before placing a trade.
Frequently asked questions
- What is a cash-secured put on DMAC?
- A cash-secured put on DMAC is the cash-secured put strategy applied to DMAC (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 DMAC stock at $6.73 on the most recent close, the strikes shown on this page are snapped to the nearest listed DMAC chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are DMAC 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 DMAC cash-secured put priced from the end-of-day chain at a 30-day expiry (ATM IV 114.10%), 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 DMAC cash-secured put?
- The breakeven for the DMAC cash-secured put priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The DMAC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 32.71%; 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 DMAC?
- Cash-secured puts on DMAC earn premium while a trader waits to acquire DMAC stock at a target strike below the current quote; most attractive when IV is rich and the trader is comfortable owning DMAC.
- How does current DMAC implied volatility affect this cash-secured put?
- DMAC ATM IV is at 114.10% with IV rank near 23.57%, 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.