DigitalOcean is sitting at $117 after a rough slide off its 50-day moving average of $154.81 — a gap that tells you this stock has been through something. It has. The company just announced it's buying back up to $500M of its 2030 convertible notes, funding the repurchase through a concurrent equity offering. Dilutive? A bit. But it also signals management wants to clean up the cap table and reduce future dilution from the converts. The market punished the shares on the announcement, which is exactly why today's put at $110 for $3.40 premium starts to look interesting.
The trade: sell the $110 put expiring July 31 for $3.40. That's a 3.1% return on capital at risk in 14 days, or roughly 81% annualized. The $110 strike sits about 6% below current price, and more importantly, it's well above the 200-day moving average of $82.39 — a level the stock has already proven it can recover from. Delta of -0.301 means roughly a 30% chance of finishing in the money at expiration. Not a layup, but the premium compensates.
Fundamentally, DOCN isn't a disaster story. A 25% profit margin is legitimate — this isn't a cash-burning growth company papering over losses. The P/E of 52.2 is elevated, sure, but the analyst consensus target of $178 suggests the street sees real upside from here. The Motley Fool piece comparing DOCN to Datadog on revenue trends is worth a read if you're going deeper — the short version is DOCN's growth has been slower but the margin story is more controlled. For a put seller, margin discipline matters more than top-line fireworks.
The risk here is real: Beta of 1.57 and 30-day implied vol at 71.7% means this stock moves. The equity offering overhang could keep a lid on price action through expiration, and if broader tech gets hit, DOCN with its elevated beta will feel it disproportionately. The $110 strike gives you a buffer, but it's not a moat. Size accordingly.
Watch the follow-through on that equity offering close, and keep an eye on any updated guidance or analyst revisions coming out of Q2 commentary season. If the stock stabilizes in the $115–$120 range, this put decays quietly. If it breaks below $113, worth having a plan.
Today's Atlas Trades
ADBE — Short Put
- Strike: $225.0
- Expiration: 2026-08-14
- Premium: $7.43
- Stock Price: $235.31
- IV: 47.8%
- Delta: -0.335
- DTE: 28
VSXY — Short Put
- Strike: $75.0
- Expiration: 2026-08-21
- Premium: $2.08
- Stock Price: $82.38
- IV: 51.7%
- Delta: -0.245
- DTE: 35
SJM — Short Put
- Strike: $110.0
- Expiration: 2026-08-21
- Premium: $4.08
- Stock Price: $113.97
- IV: 43.6%
- Delta: -0.360
- DTE: 35
ARXS — Short Put
- Strike: $35.0
- Expiration: 2026-08-21
- Premium: $0.76
- Stock Price: $40.21
- IV: 56.3%
- Delta: -0.183
- DTE: 35
TFC — Short Put
- Strike: $52.5
- Expiration: 2026-08-21
- Premium: $1.57
- Stock Price: $53.25
- IV: 30.7%
- Delta: -0.407
- DTE: 35
CPNG — Short Put
- Strike: $16.0
- Expiration: 2026-07-31
- Premium: $0.49
- Stock Price: $16.86
- IV: 66.9%
- Delta: -0.317
- DTE: 14
IIIN — Short Put
- Strike: $30.0
- Expiration: 2026-08-21
- Premium: $0.99
- Stock Price: $30.02
- IV: 28.5%
- Delta: -0.463
- DTE: 35
CAL — Short Put
- Strike: $10.0
- Expiration: 2026-08-21
- Premium: $0.29
- Stock Price: $12.36
- IV: 80.4%
- Delta: -0.161
- DTE: 35
FSLR — Short Put
- Strike: $210.0
- Expiration: 2026-07-24
- Premium: $5.86
- Stock Price: $211.93
- IV: 58.8%
- Delta: -0.436
- DTE: 7
SONY — Short Put
- Strike: $21.5
- Expiration: 2026-07-31
- Premium: $0.59
- Stock Price: $21.39
- IV: 33.0%
- Delta: -0.510
- DTE: 14
SAR — Short Put
- Strike: $20.0
- Expiration: 2026-08-21
- Premium: $1.54
- Stock Price: $19.41
- IV: 51.9%
- Delta: -0.533
- DTE: 35
JBL — Short Put
- Strike: $300.0
- Expiration: 2026-08-21
- Premium: $15.59
- Stock Price: $307.06
- IV: 51.9%
- Delta: -0.402
- DTE: 35
DOCN — Short Put
- Strike: $110.0
- Expiration: 2026-07-31
- Premium: $3.4
- Stock Price: $117.02
- IV: 71.7%
- Delta: -0.301
- DTE: 14
BTI — Short Put
- Strike: $60.0
- Expiration: 2026-08-21
- Premium: $1.18
- Stock Price: $63.16
- IV: 33.1%
- Delta: -0.279
- DTE: 35
LMND — Short Put
- Strike: $64.0
- Expiration: 2026-07-24
- Premium: $2.16
- Stock Price: $64.57
- IV: 69.3%
- Delta: -0.441
- DTE: 7
AG — Short Put
- Strike: $14.0
- Expiration: 2026-08-07
- Premium: $0.41
- Stock Price: $15.88
- IV: 78.5%
- Delta: -0.219
- DTE: 21
VEEV — Short Put
- Strike: $170.0
- Expiration: 2026-08-21
- Premium: $1.63
- Stock Price: $197.37
- IV: 44.0%
- Delta: -0.117
- DTE: 35
FITB — Short Put
- Strike: $60.0
- Expiration: 2026-08-21
- Premium: $2.19
- Stock Price: $59.37
- IV: 26.9%
- Delta: -0.516
- DTE: 35
HIMS — Short Put
- Strike: $32.5
- Expiration: 2026-07-24
- Premium: $0.97
- Stock Price: $33.68
- IV: 82.1%
- Delta: -0.353
- DTE: 7
NBIS — Short Put
- Strike: $145.0
- Expiration: 2026-07-31
- Premium: $4.36
- Stock Price: $171.77
- IV: 112.6%
- Delta: -0.188
- DTE: 14
RKT — Short Put
- Strike: $14.5
- Expiration: 2026-07-24
- Premium: $0.4
- Stock Price: $14.90
- IV: 72.3%
- Delta: -0.371
- DTE: 7
MARA — Short Put
- Strike: $11.0
- Expiration: 2026-07-24
- Premium: $0.33
- Stock Price: $11.42
- IV: 83.4%
- Delta: -0.349
- DTE: 7
RKLB — Short Put
- Strike: $63.0
- Expiration: 2026-07-24
- Premium: $1.9
- Stock Price: $67.35
- IV: 102.5%
- Delta: -0.292
- DTE: 7
OUST — Short Put
- Strike: $30.0
- Expiration: 2026-07-24
- Premium: $0.91
- Stock Price: $35.14
- IV: 153.6%
- Delta: -0.197
- DTE: 7