Option Focus | AST SpaceMobile's $10.3 Million Bull Put Spread Signals Measured Optimism Amid Heavy Bearish Flow

Option Witch07-17

AST SpaceMobile, Inc. closed at USD 55.01, down 17.04% from the previous close. Despite the sharp price decline, large options trades revealed a mix of strategies, including a notable $10.29 million bullish bull put spread, which stood in contrast to a dominant bearish flow in the broader large-trade tape.

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Options Indicators

ASTS has an implied volatility of 117.93%, and with an IV percentile of 77.29%, current option volatility sits in an elevated range, indicating options are priced expensively relative to the stock’s own recent history. The IV/HV ratio of 1.12 further suggests implied volatility is running modestly above realized volatility, reinforcing the view that the options market is assigning a premium to near-term uncertainty. The Call/Put volume ratio is 0.88.

Large Trades

A bullish bull put spread worth $10.29 million stood out as one of the day’s largest displayed trades. The structure involved selling 2,600 October 16, 2026 $75.00 puts for $6.65 million while buying 3,200 October 16, 2026 $55.00 puts for $3.65 million, creating a net credit position. With the stock reference at $55.01, the short $75.00 put was in the money while the long $55.00 put was slightly out of the money, making this a defined-risk premium-collection strategy that expresses a constructive view above the lower strike zone. Strategically, the trader appears willing to absorb downside exposure in exchange for premium, while the long $55.00 put caps tail risk, which is consistent with a moderately bullish stance rather than an outright aggressive upside chase.

A bullish bull call spread worth $5.12 million was the other highlighted trade, combining the sale of 2,000 January 21, 2028 $120.00 calls for $3.07 million with the purchase of 2,000 January 15, 2027 $75.00 calls for $2.05 million. This was entered for a net credit, and both call strikes were out of the money relative to the $55.01 reference price. The position reflects a directional upside view with risk partially financed by selling farther-dated upside at a much higher strike, suggesting the trader wants exposure to a medium-term rally while limiting capital outlay and implicitly capping some longer-term upside beyond $120.00. In practical terms, this combination points to a bullish but measured outlook rather than a pure speculative call purchase.

Overall sentiment across all large trades was bearish, with $15.41 million in bullish flow versus $77.58 million in bearish flow, leaving a net bearish difference of $62.17 million. The directional judgment is clearly negative because the bullish highlighted spreads were outweighed by much heavier downside-oriented and premium-selling put activity elsewhere in the large-trade tape. Even though the displayed trades show some investors positioning for stabilization or upside recovery through defined-risk bullish structures, the broader large-trade balance indicates that the market’s dominant tone remained defensive and tilted toward downside risk.

Strategy Reference

For a seller preferring low assignment probability, a deep out-of-the-money put, such as a $30.00 strike, could be considered; for those seeking defined risk with less margin than a naked short, a bear put spread using nearer-term expirations is a viable alternative.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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