Daily Options Selling Strategy | Capital Flocks to Memory ETFs! DRAM Up Nearly 5% in Pre-Market—How to Ride the Memory Bull Run?

I. Market Barometer

The three major U.S. equity indices extended gains in the previous session, with investor enthusiasm for AI-driven memory stocks continuing to heat up. $Roundhill Memory ETF (DRAM.US)$ Fueled by an AI-driven memory supercycle, this ETF has attracted massive inflows, surging over 130% from its April lows. Its assets under management surpassed $10 billion in just 43 days, setting a new record for the fastest-growing non-crypto ETF—an ideal window for options selling strategies amid such strong market momentum.

II. Focus on Hot Targets

DRAM: AI memory 'vehicle' that raised over $10 billion in 43 days, up nearly 5% in pre-market trading

$Roundhill Memory ETF (DRAM.US)$ It closed the previous trading session at $63.20. Since April, this ETF has gained more than 130%. In a research report released on June 1, Goldman Sachs noted that the current memory chip shortage will persist through at least 2028, fueling sustained momentum in memory stocks, with DRAM rising nearly 5% in pre-market trading.

The DRAM ETF is currently in a phase of continuously hitting new highs and found solid support in mid-May within the $49–$51 range. The current price trades above its 5-day, 10-day, and 50-day moving averages, maintaining a strong bullish structure. Implied volatility stands at a historically high level of 86%, while a low put/call ratio reflects robust market bullish sentiment.

The core driver behind the current memory rally is an AI-driven structural 'super cycle.'Surging demand for AI servers has directly driven high-bandwidth memory (HBM) to become the tightest supply bottleneck. Samsung Electronics of South Korea, Micron Technology of the U.S., and SK hynix—three global leaders in memory chip manufacturing—have recently each surpassed a $1 trillion market capitalization, becoming focal points in the semiconductor sector.

Market expectations have evolved from short-term supply shortages and price hikes to long-term structural supply-demand imbalances.In a research report released on June 1, Goldman Sachs stated that storage bandwidth and capacity have become new bottlenecks under AI-driven demand, causing the supply-demand gap to widen. The current memory chip shortage is expected to last through at least 2028.Goldman Sachs has revised upward its forecasts for the supply-demand gaps across the DRAM, NAND, and HBM markets in 2027, projecting tighter supply conditions than in 2026. It also raised its target prices for SK hynix and Samsung Electronics to KRW 3.3–3.5 million and KRW 480,000, respectively.

Dell’s latest earnings report explicitly identified constraints in DRAM, NAND, and CPU supplies as bottlenecks limiting AI system deliveries. Micron’s entire HBM capacity for 2026 has already been reserved by hyperscale customers, underscoring the strong pricing power memory makers hold in this cycle. A prior Morgan Stanley teardown report on NVIDIA’s Rubin platform further validated this trend from a hardware perspective—memory content per AI rack now carries a value of $2 million, a staggering 435% increase from the prior generation, with its share of the bill of materials (BOM) surging from 7–9% to 26%.

TrendForce significantly raised its memory market forecasts, lifting its projection for the global memory market in 2026 from $551.6 billion to $889.3 billion, and revising its 2027 forecast upward from $842.7 billion to over $1.28 trillion—an implied annual growth rate of approximately 44%.

III. Seller Options Strategy

1. Cash Secured Put

Sell 1 contract of $Roundhill Memory ETF (DRAM.US)$ June 18, 2026, $52 Put; estimated required margin (for reference only): $5,200 ($52 × 100)

Opportunity Screening Logic:

For investors who have not yet established a position but wish to participate in the long-term growth thesis of AI memory, the current DRAM ETF is trading near all-time highs and has risen too rapidly in the short term, making direct entry at these levels vulnerable to pullback risk. However, the fundamentals underpinning the memory sector remain extremely solid.

By selling a Put option, if the stock price consolidates at its current high level or continues to rise, the investor can collect premium income to enhance the annualized return on idle capital. If the stock price pulls back toward the $52 strike price due to short-term profit-taking, the investor would still acquire the shares at that desired entry point.

IV. Risk Control Reminder

Although the seller strategy has a high probability of success, investors must still manage risks effectively:

– Position management is key:The biggest risk for option sellers lies in black swan events. It is recommended that margin exposure for a single underlying should not exceed 20% of total capital. Never sell options beyond your capacity for the sake of greedy premiums.

– Timely rolling of covered call options: When a covered call option becomes deeply in-the-money (stock price far exceeds the strike price), and if the underlying stock is still viewed favorably, decisively 'roll' the position — that is, close the current option by buying it back and simultaneously sell an option with a later expiration date and a higher strike price to avoid having the stock called away at a low price.

– Cash-secured put options warn of 'left-tail risk':For cash-secured puts, if the stock price collapses due to deteriorating fundamentals (rather than a normal pullback), do not hold on stubbornly. At this time, stop losses should be executed, or 'rolling down' can be employed to buy time and wait for volatility to normalize.

Make good use of the options seller zone to understand the income strategies for selling optionsEarn option premiums!

Options Risk Warning

An option is a contract that grants the holder the right, but not the obligation, to buy or sell an asset at a fixed price on a specific date or at any time before that date. The price of an option is influenced by various factors, including the current price of the underlying asset, the strike price, time to expiration, and implied volatility. Implied volatility reflects the market’s expectations for the level of volatility in the option over a future period. It is a data point derived inversely from the Black-Scholes option pricing model and is generally regarded as an indicator of market sentiment. When investors anticipate greater volatility, they may be more willing to pay a higher price for options to hedge risks, resulting in higher implied volatility. Traders and investors use implied volatility to assess the attractiveness of option prices, identify potential mispricings, and manage risk exposure.

Disclaimer

This content does not constitute any offer, solicitation, recommendation, opinion, or guarantee for any securities, financial products, or tools. The risk of loss in trading options can be substantial. In some cases, losses incurred may exceed the initial margin deposited. Even if you set contingency orders, such as 'stop-loss' or 'limit' orders, these may not necessarily prevent losses. Market conditions may make such orders unexecutable. You may be required to deposit additional margin within a short period. If you fail to provide the required amount within the specified time, your open positions may be liquidated. However, you will still be responsible for any shortfall in your account resulting from such liquidation. Therefore, before trading, you should study and understand options and carefully consider whether such trading suits you based on your financial situation and investment objectives. If you trade options, you should be familiar with the procedures for exercising options and the rights and obligations upon expiration. Options trading involves extremely high risks and is not suitable for all investors. Investors should read Characteristics and Risks of Standardized Options carefully before engaging in any options trading strategy.

Editor/Doris

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