ARM closed at USD 332.56, down 0.19%, after trading between USD 324.56 and USD 336.98 on volume of about 6.97 million shares.

Large options trades were dominated by a USD 3.03 million long-dated call purchase, creating a clearly bullish tone. A block of 1,750 March 2027 $640.00 calls was bought, and with ARM shares near USD 332.56, this deep out-of-the-money position reflects aggressive long-term upside conviction rather than near-term hedging or income generation. The trade lifted call-side premium flow and reinforced a positive sentiment shift in ARM’s options market.

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Options Indicators

ARM’s implied volatility is 78.93%, and with an IV percentile of 70.92%, current option volatility sits in the elevated zone, indicating that options are priced expensively relative to ARM’s own recent history. At the same time, the IV/HV ratio of 0.93 suggests implied volatility is slightly below realized volatility, so although absolute option premiums are rich on a historical percentile basis, they are not especially overstated versus the stock’s actual recent movement.

The Call/Put volume ratio is 1.78.

Large Trades

A call purchase worth $3.03 million was the standout large trade in ARM, with 1,750 contracts bought on the March 19, 2027 $640.00 strike. With the stock referenced at $332.56, this call is deeply out of the money, making it a high-upside bullish wager that depends on a substantial rally over a long time horizon. The trade suggests the buyer was seeking leveraged upside exposure rather than near-term protection, positioning for a major appreciation scenario in ARM shares into 2027.

Overall, the large-trade flow points clearly bullish. The only notable block was a sizable long-dated call buy, and its far-out-of-the-money strike indicates aggressive upside expectations rather than a defensive or income-oriented posture. Taken together, the bulk-order activity suggests a trader or institution is expressing confidence in ARM’s long-term upside potential and is willing to pay premium for convex exposure to a strong advance.

Strategy Reference

For a lower assignment probability sell-side idea, traders could consider the March 2027 $180.00 put, while a bullish call spread such as buying the $400.00 call against selling the $640.00 call may offer defined risk for those unwilling to post larger margin on the deep out-of-the-money long call alone.