Digi International is having a moment. The IoT infrastructure company just dropped three product announcements in rapid succession, expanding its Digi Axess platform with native remote access and launching Digi Remote Reach for peer-to-peer edge connectivity. When a $1.2B market cap company starts firing off press releases like a startup seeking Series A, it's worth paying attention.
The $60 put sale on DGII captures 18.4% annualized premium while trading sits 7% above our strike. At $64.37, the stock has broken cleanly above both moving averages — the 50-day at $59.05 and 200-day at $46.10. That's a 40% rally from the 200-day, suggesting the market is buying into management's business model pivot toward higher-margin recurring revenue.
The fundamentals tell a mixed but improving story. A 59.6 P/E screams expensive until you consider the 9.1% profit margin in a notoriously low-margin hardware business. Beta of 0.98 means DGII moves with tech but doesn't amplify every market sneeze. Analysts see $68 as fair value — roughly 12% upside from current levels and 13% above our put strike.
Implied volatility at 47.5% creates the opportunity here. Either DGII's IoT expansion story plays out and the stock continues higher, or we collect shares at a 6.7% discount to today's price. With 36 days to expiration and a delta of -0.284, we're betting the recent momentum has legs while building in a reasonable margin of safety.
Watch for execution updates on the new platform features and any customer wins that validate the premium pricing strategy.
Today's Atlas Trades
RH — Short Put
- Strike: $139.0
- Expiration: 2026-07-10
- Premium: $4.12
- Stock Price: $148.69
- IV: 50.9%
- Delta: -0.287
- DTE: 29
BNED — Short Put
- Strike: $10.0
- Expiration: 2026-07-17
- Premium: $0.31
- Stock Price: $10.82
- IV: 49.8%
- Delta: -0.273
- DTE: 36
FLUT — Short Put
- Strike: $105.0
- Expiration: 2026-07-17
- Premium: $3.12
- Stock Price: $112.94
- IV: 47.3%
- Delta: -0.278
- DTE: 36
VRNS — Short Put
- Strike: $30.0
- Expiration: 2026-07-17
- Premium: $0.86
- Stock Price: $32.90
- IV: 51.3%
- Delta: -0.249
- DTE: 36
SNDX — Short Put
- Strike: $16.0
- Expiration: 2026-07-17
- Premium: $0.48
- Stock Price: $17.58
- IV: 52.9%
- Delta: -0.251
- DTE: 36
DGII — Short Put
- Strike: $60.0
- Expiration: 2026-07-17
- Premium: $1.84
- Stock Price: $64.37
- IV: 47.5%
- Delta: -0.284
- DTE: 36
AVTR — Short Put
- Strike: $9.0
- Expiration: 2026-07-17
- Premium: $0.29
- Stock Price: $9.65
- IV: 48.4%
- Delta: -0.288
- DTE: 36
SSTK — Short Put
- Strike: $12.5
- Expiration: 2026-07-17
- Premium: $0.34
- Stock Price: $13.70
- IV: 49.7%
- Delta: -0.245
- DTE: 36
BMRN — Short Put
- Strike: $52.5
- Expiration: 2026-07-17
- Premium: $1.64
- Stock Price: $56.17
- IV: 47.3%
- Delta: -0.290
- DTE: 36
ETOR — Short Put
- Strike: $35.0
- Expiration: 2026-07-17
- Premium: $1.0
- Stock Price: $37.76
- IV: 47.2%
- Delta: -0.271
- DTE: 36
MHK — Short Put
- Strike: $95.0
- Expiration: 2026-07-17
- Premium: $3.07
- Stock Price: $101.75
- IV: 48.5%
- Delta: -0.291
- DTE: 36
GBFH — Short Put
- Strike: $30.0
- Expiration: 2026-07-17
- Premium: $0.89
- Stock Price: $32.09
- IV: 45.7%
- Delta: -0.286
- DTE: 36