DMAC Long 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 $352.9M, a beta of 1.00 versus the broader market, a 52-week range of 3.475-10.4195, average daily share volume of 192K, 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 1.00 places DMAC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a long put on DMAC?

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 DMAC snapshot

As of June 29, 2026, spot at $7.20, ATM IV 159.80%, IV rank 33.27%, expected move 45.81%. The long 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 18-day expiry.

Why this long put structure on DMAC specifically: DMAC IV at 159.80% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 45.81% (roughly $3.30 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 DMAC expiries trade a higher absolute premium for lower per-day decay. Position sizing on DMAC should anchor to the underlying notional of $7.20 per share and to the trader's directional view on DMAC stock.

DMAC long put setup

The DMAC 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 DMAC near $7.20, the first option leg uses a $7.20 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 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 DMAC shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 1Put$7.20N/A

DMAC long 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 the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.

DMAC long put payoff curve

Modeled P&L at expiration across a range of underlying prices for the long 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 long put on DMAC

Long puts on DMAC hedge an existing long DMAC stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying DMAC exposure being hedged.

DMAC thesis for this long put

The market-implied 1-standard-deviation range for DMAC extends from approximately $3.90 on the downside to $10.50 on the upside. A DMAC long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long DMAC position with one put per 100 shares held. Current DMAC IV rank near 33.27% is mid-range against its 1-year distribution, so the IV signal is neutral; the long put thesis on DMAC should anchor more to the directional view and the expected-move geometry. 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 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. 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. Long-premium structures like a long put on DMAC 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 DMAC chain quotes before placing a trade.

Frequently asked questions

What is a long put on DMAC?
A long put on DMAC is the long put strategy applied to DMAC (stock). 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 DMAC stock trading near $7.20, 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 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 DMAC long put priced from the end-of-day chain at a 30-day expiry (ATM IV 159.80%), 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 long put?
The breakeven for the DMAC long 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 45.81%; 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 DMAC?
Long puts on DMAC hedge an existing long DMAC stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying DMAC exposure being hedged.
How does current DMAC implied volatility affect this long put?
DMAC ATM IV is at 159.80% with IV rank near 33.27%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

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