FRMM Long Put Strategy
FRMM (Forum Markets, Incorporated), in the Technology sector, (Software - Application industry), listed on NASDAQ.
ETHZilla Corp. is a technology company in the decentralized finance (DeFi) industry, which intends to connect financial institutions, businesses, and organizations worldwide by enabling secure, accessible blockchain transactions through Ethereum Network protocol implementations. It continues to maintain the deployment and development of its biotech and gaming operations. The company was founded by Marc Feldmann, Lawrence J. Steinman, and Jonathan B. Rothbard on September 7, 2016 and is headquartered in Palm Beach, FL.
FRMM (Forum Markets, Incorporated) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $90.6M, a beta of 1.53 versus the broader market, a 52-week range of 1.76-174.6, average daily share volume of 1.3M, a public-listing history dating back to 2025, approximately 3 full-time employees. These structural characteristics shape how FRMM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.53 indicates FRMM 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 FRMM?
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 FRMM snapshot
As of May 15, 2026, spot at $3.84, ATM IV 155.70%, expected move 44.64%. The long put on FRMM 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 long put structure on FRMM specifically: IV rank is unavailable in the current snapshot, so regime-based timing for FRMM is inferred from ATM IV at 155.70% alone, with a market-implied 1-standard-deviation move of approximately 44.64% (roughly $1.71 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 FRMM expiries trade a higher absolute premium for lower per-day decay. Position sizing on FRMM should anchor to the underlying notional of $3.84 per share and to the trader's directional view on FRMM stock.
FRMM long put setup
The FRMM 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 FRMM near $3.84, the first option leg uses a $4.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FRMM 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 FRMM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Put | $4.00 | $0.78 |
FRMM long put risk and reward
- Net Premium / Debit
- -$77.50
- Max Profit (per contract)
- $321.50
- Max Loss (per contract)
- -$77.50
- Breakeven(s)
- $3.23
- Risk / Reward Ratio
- 4.148
Max profit equals the strike minus premium times 100 (reached at zero); max loss equals the premium times 100. Breakeven is strike minus premium.
FRMM long put payoff curve
Modeled P&L at expiration across a range of underlying prices for the long put on FRMM. 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 | -99.7% | +$321.50 |
| $0.86 | -77.7% | +$236.71 |
| $1.71 | -55.6% | +$151.91 |
| $2.55 | -33.5% | +$67.12 |
| $3.40 | -11.4% | -$17.68 |
| $4.25 | +10.7% | -$77.50 |
| $5.10 | +32.8% | -$77.50 |
| $5.95 | +54.8% | -$77.50 |
| $6.79 | +76.9% | -$77.50 |
| $7.64 | +99.0% | -$77.50 |
When traders use long put on FRMM
Long puts on FRMM hedge an existing long FRMM stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying FRMM exposure being hedged.
FRMM thesis for this long put
The market-implied 1-standard-deviation range for FRMM extends from approximately $2.13 on the downside to $5.55 on the upside. A FRMM long put expresses a directional view that the underlying closes below the strike minus premium at expiration, frequently sized to hedge an existing long FRMM position with one put per 100 shares held. As a Technology name, FRMM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FRMM-specific events.
FRMM 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. FRMM positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FRMM alongside the broader basket even when FRMM-specific fundamentals are unchanged. Long-premium structures like a long put on FRMM 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 FRMM chain quotes before placing a trade.
Frequently asked questions
- What is a long put on FRMM?
- A long put on FRMM is the long put strategy applied to FRMM (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 FRMM stock trading near $3.84, the strikes shown on this page are snapped to the nearest listed FRMM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FRMM 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 FRMM long put priced from the end-of-day chain at a 30-day expiry (ATM IV 155.70%), the computed maximum profit is $321.50 per contract and the computed maximum loss is -$77.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FRMM long put?
- The breakeven for the FRMM long put priced on this page is roughly $3.23 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 FRMM market-implied 1-standard-deviation expected move is approximately 44.64%; 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 FRMM?
- Long puts on FRMM hedge an existing long FRMM stock position or express a bearish view with defined risk; position sizing typically scales the put notional to the underlying FRMM exposure being hedged.
- How does current FRMM implied volatility affect this long put?
- Current FRMM ATM IV is 155.70%; IV rank context is unavailable in the current snapshot.