SMH Short Put — Jun 18, 2026

SMH (VANECK VECTORS ETF TR SEMICONDUCTOR ETF) presents a short put opportunity with very elevated implied volatility. IV Rank 73. IV 3481.0% trades 500.0pp above 30-day HV (2981.0%). This setup favors net premium sellers.

Sell the $460 put for $9.25 credit. Naked single-leg exposure; collect premium from time decay if SMH stays above the strike. Underlying ~$522.69, 44 DTE. Max profit $925 per contract, max loss $45075, 2.1% return on risk, 84% POP. Breakeven at $450.75.

Management: take profit at ~50% of max profit ($463). Cut at 2x credit ($1850 loss). If short strike is breached with > 14 DTE, consider rolling out for a credit. Close before expiration week to avoid gamma risk.

Underlying: SMH @ ~$522.69 Expiration: Jun 18, 2026 (44 DTE) Legs:

• Sell SMH Jun 18, 2026 $460 Put (delta -0.16, mid $9.25)

Use limit orders at the mid or slightly worse. Verify bid-ask spread (currently ~9.7% of mid) before sending.

Take profit at 50% of max profit ($463). Cut loss if position reaches 2x credit received ($1850 loss). Roll if tested with > 14 DTE remaining.