Cerebras Systems closed at USD 231.01, down 11.85%.

Despite the sharp single-day decline, options market activity painted a distinctly constructive picture. A massive $3.22 million bullish put sale dominated the session, far outweighing a smaller $0.47 million bearish put purchase. The net $2.75 million bullish flow signals institutional confidence that the stock can stabilize and hold above key downside levels, even as the price pulled back sharply.

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Options Indicators

CBRS has an implied volatility of 97.07%, but its IV percentile is only 3.28%, which indicates that despite the headline IV looking high in absolute terms, current option pricing sits near the low end of its own historical range. Combined with an IV/HV ratio of 0.77, this suggests implied volatility is running below realized volatility, reinforcing the view that options are relatively cheaply priced and that volatility expectations are subdued versus what the stock has recently delivered. The Call/Put volume ratio is 0.73.

Large Trades

A PUT sale worth $3.22 million was the largest large trade of the session, with 18,585 contracts sold at the 125.0 strike expiring on 2026-10-16. With CBRS referenced at $231.01, this put was out of the money at execution, making it a moderately bullish trade structure. Selling an out-of-the-money put at such a low strike typically reflects either confidence that the stock will remain well above that level through expiration or a willingness to accumulate shares at an effective lower entry point if assigned. Strategically, this kind of trade is usually associated with premium collection and a constructive view on downside risk.

A PUT buy worth $0.47 million followed, consisting of 5,343 contracts purchased at the 210.0 strike expiring on 2026-08-14. With the stock at $231.01, this put was also out of the money, indicating a bearish position that benefits from a decline toward or below the strike over time. The trade suggests downside speculation or portfolio hedging, but its notional size was far smaller than the leading bullish put sale. Overall, large-trade sentiment leaned bullish, with $3.22 million in bullish flow versus $0.47 million in bearish flow, for a net difference of $2.75 million to the bullish side. The directional takeaway is clearly constructive, as the dominant activity was a sizable out-of-the-money put sale consistent with premium harvesting and confidence that shares can stay comfortably above key downside levels.

Strategy Reference

For traders seeking to mirror the bullish flow with defined risk, selling a put credit spread—such as the $125/$120 put spread in the same expiration cycle—could achieve a similar premium-collection goal while capping margin requirements.