ARM Holdings closed at USD 282.57, showing a 1.43% decline from the previous close.

A notable USD 1.07 million net-premium bullish call spread dominated Tuesday’s large-trade flow, reflecting institutional conviction for sustained upside through August 2026. The overall large-trade profile was uniformly bullish, with no significant bearish prints detected.

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Options Indicators

ARM’s implied volatility is 79.60%, and with an IV percentile of 71.71%, current option volatility sits in the elevated zone, indicating that options are priced expensively relative to their own recent history. At the same time, the IV/HV ratio of 0.80 suggests implied volatility is running below historical realized volatility, so while premium levels are high on a percentile basis, they are not especially stretched versus the stock’s actual recent movement. The Call/Put volume ratio is 1.16.

Large Trades

A bullish call spread with a net premium outlay of USD 1.07 million was the standout large trade, built by buying 1,426 Aug. 7, 2026 $252.50 calls for USD 3.72 million and simultaneously selling 1,426 Aug. 7, 2026 $260.00 calls for USD 2.65 million. With ARM referenced at $282.57, both strikes are in the money, and the structure caps upside above $260.00 in exchange for reducing upfront cost versus an outright long call. Strategically, this is a defined-risk bullish position that expresses directional upside exposure while controlling premium spent, suggesting the trader expects ARM to remain strong through expiration but is willing to limit maximum gains beyond the short-call strike.

Overall sentiment is clearly bullish. The full set of large trades was entirely skewed to the upside, with no meaningful bearish large-trade flow appearing alongside it, and the dominant activity came through a call-spread structure that reflects constructive directional conviction paired with disciplined risk management. Taken together, the order flow points to expectations for continued strength in ARM rather than downside protection or speculative bearish positioning.

Strategy Reference

For premium sellers, the elevated IV percentile makes out-of-the-money put spreads a natural fit; selling a May 2025 $220 put could offer a low assignment probability while the prevailing order flow supports a buy-the-dip mentality.