DMAC Cash-Secured Put Strategy

DMAC (DiaMedica Therapeutics Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

DiaMedica Therapeutics Inc., a clinical stage biopharmaceutical company, develops treatments for neurological and kidney diseases. The company's lead drug candidate is DM199, a recombinant human tissue kallikrein-1 protein, which is in Phase 2 REDUX trial for the treatment of patients with moderate or severe chronic kidney disease caused by Type I or Type II diabetes; and Phase 2/3 REMEDY2 trials for the treatment of patients with acute ischemic stroke. It is also developing DM300 that is in pre-clinical stage for the treatment of inflammatory diseases. The company was formerly known as DiaMedica Inc. and changed its name to DiaMedica Therapeutics Inc. in December 2016. DiaMedica Therapeutics Inc. was incorporated in 2000 and is headquartered in Minneapolis, Minnesota.

DMAC (DiaMedica Therapeutics Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $337.3M, a beta of 0.99 versus the broader market, a 52-week range of 3.475-10.4195, average daily share volume of 198K, a public-listing history dating back to 2012, approximately 27 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 0.99 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.

Current DMAC snapshot

As of May 15, 2026, spot at $6.05, ATM IV 109.00%, IV rank 23.19%, expected move 31.25%. The cash-secured put on DMAC 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 34-day expiry.

Why this cash-secured put structure on DMAC specifically: DMAC IV at 109.00% 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 31.25% (roughly $1.89 on the underlying). The 34-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 $6.05 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 near $6.05, the first option leg uses a $5.75 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 34-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).

ActionTypeStrike / BasisPremium (est)
Sell 1Put$5.75N/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 $4.16 on the downside to $7.94 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 23.19% 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 109.00%. 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 trading near $6.05, the strikes shown on this page are snapped to the nearest listed DMAC chain strike and the premiums come straight from the end-of-day 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 109.00%), 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 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 DMAC market-implied 1-standard-deviation expected move is approximately 31.25%; 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 109.00% with IV rank near 23.19%, 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.

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