Option Focus | Circle Internet’s $3.78 Million Put Sale Signals Bullish Conviction as IV Percentile Sits at Just 24.70%

Option Witch07:03

Circle Internet Corp. closed at USD 67.05, up 0.57%.

The stock’s modest gain accompanied a notable surge in options activity, anchored by a massive put sale. A single trade worth $3.78 million dominated the flow, involving 2,000 contracts of deep out-of-the-money puts, reflecting a clear vote of confidence. The transaction, combined with a bullish volume ratio, painted a picture of investors positioning for continued price resilience.

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Options Indicators

CRCL’s implied volatility is 82.91%, while its IV percentile stands at 24.70%, which suggests that although the absolute IV level is high, it sits near the lower end of its own historical range. In other words, current option pricing appears relatively cheap rather than elevated, and with an IV/HV ratio of 1.08, implied volatility is only modestly above realized volatility, indicating option premiums are not especially stretched at the moment. The Call/Put volume ratio is 1.66.

Large Trades

A PUT sale worth $3.78 million stood out as the key large trade, with 2,000 contracts of the June 16, 2028 $55.00 put sold while the stock reference price was $67.05. This strike sits out-of-the-money, and the trade structure points to a moderately bullish stance: the seller is expressing confidence that CRCL will remain above $55.00 through expiration, allowing the premium to decay in their favor. Strategically, this kind of large out-of-the-money put writing is typically associated with premium collection and a willingness to accumulate shares at a lower effective entry level if assigned. Overall sentiment was clearly bullish. Total bullish flow reached $3.78 million versus bearish flow of $0.00 million, leaving a net bullish difference of $3.78 million. With the entire large-trade sample concentrated in an out-of-the-money put sale, the flow suggests investors were comfortable taking on downside assignment risk in exchange for premium income, a pattern that usually reflects constructive medium- to long-term confidence rather than defensive positioning.

Strategy Reference

For traders seeking a lower assignment probability, selling the $50.00 put offers a wider downside buffer while still capturing elevated premium, or a bull put spread using the $55.00/$50.00 strikes can define risk and reduce margin requirements.

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