Option Focus | NEBIUS: Institutions Deploy $17.4M Long Strangle for Volatility Bet Amid Bearish $18.6M OTM Call Sale

Option Witch07-07

NEBIUS closed at USD 213.02, down 1.21 percent. A major long strangle position costing $17.38 million, alongside a massive $18.60 million sale of far out-of-the-money calls, dominated the day's institutional options activity, signaling a significant bet on future volatility paired with a bearish to capped-bullish outlook on the stock.

Options Indicators

NBIS has an implied volatility of 142.89%, and with an IV percentile of 100.00%, its current volatility sits at the extreme high end of its historical range. Combined with an IV/HV ratio of 1.26, this suggests the options market is pricing in materially richer premiums than recent realized volatility, indicating options are expensively priced and the market is assigning a very high near-term uncertainty premium. The Call/Put volume ratio is 0.94.

Large Trades

A long call-and-put combination worth $17.38 million established a two-leg long strangle for the August 21, 2026 expiration, consisting of 2,945 contracts bought on the $250.00 call and 2,945 contracts bought on the $200.00 put. Both legs were out of the money versus the $213.02 reference stock price, and because both options were purchased, the position was entered for a net debit. Strategically, this points to a volatility-driven directional bet rather than premium collection, with the trader positioning for a large move in either direction over time while paying upfront premium for convex upside and downside exposure.

The single largest leg of the day was a $18.60 million sale of 1,500 out-of-the-money $340.00 calls expiring December 15, 2028. With the strike far above the current $213.02 stock price, this was an out-of-the-money call sale, and its strategic meaning is broadly bearish to capped-bullish, as the seller is collecting premium while expressing the view that upside to $340.00 is unlikely or at least limited over the life of the contract.

Taken together, the overall large-trade flow leans clearly bearish. The imbalance was driven mainly by the oversized short-call activity, while even the sizable long strangle reflected demand for downside protection as well as upside participation, reinforcing a cautious to negative institutional tone rather than outright bullish conviction.

Strategy Reference

For premium sellers seeking low assignment probability, a far out-of-the-money put, such as the $120.00 strike, could be considered; alternatively, a trader preferring defined risk over a naked short call might implement a bear call spread by selling the $340.00 call and buying a higher strike, like the $360.00 call.

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.

Comments

We need your insight to fill this gap
Leave a comment