Option Focus | CoreWeave Sees Net Bullish $3.81 Million Flow as Synthetic Long and Put Sales Offset $2.88 Million Bearish Put Buy

Option Witch07:01

CoreWeave, Inc. finished the latest session at USD 90.87, a decline of 2.47%.

Large options activity showed a net bullish tilt of $3.81 million. The biggest single print was a $2.88 million long put purchase at the 70.0 strike expiring in October 2026, but this was offset by bullish put sales and a net-credit synthetic long. Bullish flow reached $6.69 million versus $2.88 million in bearish flow, indicating institutional positioning leaned toward premium collection and upside or stable-price exposure rather than outright downside protection.

>>>Click to claim your commission-free cards before trading!

Options Indicators

CRWV’s implied volatility is 81.67%, but its IV percentile is only 11.16%, which indicates that despite the high absolute IV level, current option pricing sits near the low end of its own historical range. In other words, volatility is on the low side relative to where this stock’s options have typically traded, so options appear cheaply priced rather than expensive. The IV/HV ratio of 0.56 also suggests implied volatility is running below realized volatility, reinforcing the view that option premiums are relatively modest versus the stock’s recent actual movement.

The Call/Put volume ratio is 1.13.

Large Trades

A PUT buy worth $2.88 million was the largest single-leg trade of the day, with 10,465 contracts bought at the 70.0 strike expiring on 2026-10-16. With the stock reference price at $90.87, this put sits out of the money, making it a distinctly bearish downside-positioning trade rather than an immediate in-the-money hedge. The buyer is effectively paying premium for protection or a leveraged downside bet into a longer-dated tenor, signaling concern about a meaningful decline below $70.0 over time.

A synthetic long position with a net credit of $188 thousand was another standout trade, built by buying the 95.0 call and selling the 90.0 put for the same 2026-08-21 expiration. With both strikes out of the money versus the $90.87 reference price, this structure expresses a bullish directional view while also bringing in premium upfront, which makes it a net-credit synthetic long. Strategically, this is a directional upside bet that mimics long stock exposure above the call strike while taking on downside assignment risk through the short put, reflecting willingness to accumulate bullish exposure with premium collection rather than paying outright for calls.

Overall, large-trade sentiment was bullish, with total bullish flow of $6.69 million versus bearish flow of $2.88 million, leaving a net bullish imbalance of $3.81 million. The conclusion is clearly constructive: although the biggest individual print was a bearish long put purchase, the broader block activity was dominated by bullish put sales and a bullish synthetic long entered for net credit, indicating that institutional-sized traders were more focused on premium-selling and favorable upside-to-stable-price positioning than on aggressive downside protection.

Strategy Reference

For sellers seeking low assignment probability, the 70.0 strike put expiring 2026-10-16 aligns with the largest bearish print, but selling puts closer to the 60.0 strike could offer a wider downside buffer given the stock’s high IV percentile relative to its own range; alternatively, a bull put spread such as selling the 85.0 put and buying the 70.0 put for August 2026 expiration reduces margin requirements while still collecting net credit.

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