Option Focus | CoreWeave's $1.8 Million Long-Dated Call Buy and $1.3 Million Put Sale Signal Bullish Conviction

Option Witch07-22 19:22

CoreWeave, Inc. closed at USD 79.58, up 8.92% from the prior close.

This significant move was accompanied by substantial options activity, including a large, high-conviction purchase of long-dated calls and a notable put sale, both pointing to a bullish outlook among sophisticated traders.

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Options Indicators

CRWV’s implied volatility stands at 113.58%, and with an IV percentile of 92.03%, current volatility is firmly in the elevated range, indicating that options are priced expensively relative to their own historical levels. The IV/HV ratio of 1.50 further suggests implied volatility is running well above realized volatility, showing that the options market is embedding a substantial premium for future movement. In this setup, long option buyers are paying a rich volatility price, while premium-selling structures or defined-risk spreads may offer a more favorable way to express a view while managing cost. The Call/Put volume ratio is 2.06.

Large Trades

A CALL purchase worth $1.81 million was the largest single-leg trade of the day, with 1,050 contracts bought at the 195.00 strike expiring on 2028-06-16. With the stock reference price at $79.58, this call is deeply out-of-the-money, making it a high-conviction bullish position that benefits most from a substantial upside move over a long time horizon. The use of long-dated upside calls suggests the trader is positioning for significant appreciation while keeping downside risk limited to the premium paid.

A PUT sale worth $1.31 million was the other notable large trade, with 3,055 contracts sold at the 50.00 strike expiring on 2026-11-20. Given the current stock reference price of $79.58, this put is out-of-the-money, so the seller is expressing a bullish stance through premium collection and a willingness to take assignment at a lower effective entry point if the stock declines. Strategically, this is consistent with a moderately bullish to constructive view, as the trader profits if shares remain above the strike through expiration.

Overall large-trade sentiment was decisively bullish, with $3.12 million in bullish flow versus $0.00 million in bearish flow, for a net difference of $3.12 million to the upside. The directional bias is clearly bullish, as both highlighted trades point the same way: one trader sought leveraged upside exposure through a far out-of-the-money long-dated call, while another collected premium through an out-of-the-money put sale that reflects confidence in downside support. Together, these trades indicate market participants are positioning for strength rather than protection or downside speculation.

Strategy Reference

Given the elevated implied volatility, traders with a bullish view but seeking to manage cost could consider a bull put spread, selling a put at a strike like 45.00 and buying a lower strike put for protection, which defines risk while collecting premium in a high-volatility environment.

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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