DLocal just climbed nearly 13% and got added to the Russell 2000. Most traders chased it. We're getting paid to potentially buy it cheaper.
The Trade
We're selling the $14.47 put on DLO expiring July 17, 2026 for $0.48 premium. That's a 3.3% return on capital in 15 days, or roughly 80% annualized — not bad for a name trading just above its strike with a beta under 1.
Why DLO, Why Now
DLocal is a fintech infrastructure play focused on emerging markets — think payment processing for Latin America, Africa, and Southeast Asia. It's not flashy, but it has a 15.9% profit margin and trades at 20x earnings, which is reasonable for a software-infrastructure company with genuine international scale. The analyst consensus target sits at $17, giving meaningful upside from the current $14.67 price.
The recent 12.9% pop came with real catalysts: Russell 2000 inclusion (which forces passive index funds to buy the stock) and an upcoming Q2 earnings report. Index inclusion tends to create sustained buying pressure over the rebalancing window, not just a one-day spike. That's a structural tailwind, not noise.
The Setup
With the stock at $14.67, our $14.47 strike sits just $0.20 out of the money — technically near-the-money, but that's where the premium is. IV is running at 49.9% against a 30-day historical vol, which implies the market is pricing in more movement than this stock (beta: 0.96) typically delivers. We're on the right side of that trade.
The 50-day MA is at $12.59 and the 200-day is at $13.37. The stock is trading above both, and that recent breakout puts meaningful technical support below our strike. If DLO pulls back to $14.47, we're buying into a name with index tailwinds, improving fundamentals, and a catalyst (Q2 earnings) that hasn't printed yet.
What to Watch
The Q2 earnings date hasn't been pinned down yet — confirm it doesn't fall before July 17 expiration. Russell rebalancing flows and any guidance around emerging market payment volumes will be the narrative drivers. A broader risk-off move in small caps is the main threat to this trade, so keep an eye on IWM sentiment heading into the holiday-shortened week.
Today's Atlas Trades
DLO — Short Put
- Strike: $14.47
- Expiration: 2026-07-17
- Premium: $0.48
- Stock Price: $14.67
- IV: 49.9%
- Delta: -0.420
- DTE: 15
VRDN — Short Put
- Strike: $18.0
- Expiration: 2026-07-17
- Premium: $0.56
- Stock Price: $18.48
- IV: 53.5%
- Delta: -0.378
- DTE: 15
NU — Short Put
- Strike: $13.0
- Expiration: 2026-07-31
- Premium: $0.46
- Stock Price: $13.39
- IV: 43.9%
- Delta: -0.373
- DTE: 29
ADNT — Short Put
- Strike: $17.5
- Expiration: 2026-07-17
- Premium: $0.47
- Stock Price: $18.14
- IV: 52.9%
- Delta: -0.343
- DTE: 15
CNM — Short Put
- Strike: $45.0
- Expiration: 2026-07-17
- Premium: $1.32
- Stock Price: $45.41
- IV: 42.5%
- Delta: -0.434
- DTE: 15
FRSH — Short Put
- Strike: $10.0
- Expiration: 2026-07-17
- Premium: $0.27
- Stock Price: $10.41
- IV: 54.8%
- Delta: -0.333
- DTE: 15
SRAD — Short Put
- Strike: $15.0
- Expiration: 2026-07-17
- Premium: $0.55
- Stock Price: $15.12
- IV: 50.8%
- Delta: -0.443
- DTE: 15
NAMS — Short Put
- Strike: $35.0
- Expiration: 2026-07-17
- Premium: $1.17
- Stock Price: $35.17
- IV: 45.2%
- Delta: -0.454
- DTE: 15
TFPM — Short Put
- Strike: $30.0
- Expiration: 2026-07-17
- Premium: $1.12
- Stock Price: $30.18
- IV: 50.6%
- Delta: -0.450
- DTE: 15
ELAN — Short Put
- Strike: $24.0
- Expiration: 2026-07-17
- Premium: $0.82
- Stock Price: $24.09
- IV: 45.7%
- Delta: -0.459
- DTE: 15
GTES — Short Put
- Strike: $27.0
- Expiration: 2026-07-17
- Premium: $0.8
- Stock Price: $27.15
- IV: 40.6%
- Delta: -0.449
- DTE: 15
IBRX — Short Put
- Strike: $8.0
- Expiration: 2026-07-31
- Premium: $0.22
- Stock Price: $9.20
- IV: 68.2%
- Delta: -0.201
- DTE: 29