Option Focus | Strategy’s $4.75 Million Double Short Call Combo Signals Bearish Premium Collection, While Low IV Percentile Hints Options Are Relatively Cheap

Option Witch
09/26

Strategy closed at $158.61, down 1.86 percent.

The options tape was dominated by a $4.75 million net credit double short call structure targeting a neutral-to-bearish outlook, while a $970,000 net debit bull call spread provided a smaller bullish counterpoint. Despite high absolute implied volatility, the low IV percentile and depressed IV/HV ratio suggest option premiums are relatively cheap, creating an environment where aggressive premium collection stands out among large traders.

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Options Indicators

Strategy’s implied volatility stands at 74.94%, while its IV percentile is just 15.14%, which indicates that although the absolute IV level is high, it sits near the lower end of its own historical range and options are therefore cheaply priced on a relative basis, with volatility conditions leaning to the low side rather than elevated. This is further supported by the IV/HV ratio of 0.72, suggesting implied volatility is running below realized volatility and that current option premiums appear relatively inexpensive versus the stock’s recent actual movement.

The Call/Put volume ratio is 2.61.

Large Trades

A call premium-selling structure worth $4.75 million was the largest displayed trade, consisting of a same-direction double short call spread-like combination with both legs expiring on 2026-10-02: short 162.5 calls and short 170.0 calls, both opened out of the money against a $158.61 stock reference. As a spread strategy that includes both Sell Call legs, its size should be read by the provided net credit, which was a $4.75 million net credit. This positioning reflects premium collection and a view that Strategy is unlikely to make an aggressive upside move through those strikes by expiration, making it a neutral-to-bearish volatility-selling stance with capped upside risk characteristics.

A bullish call spread with a $970,000 net debit was the second highlighted trade, built by buying the 162.5 calls and selling the 170.0 calls for the same 2026-10-02 expiration, with both strikes also out of the money versus spot. As a classic bull call spread, the trade expresses a directional upside bet while reducing upfront premium cost through the short higher-strike call; its size is defined by the provided $970,000 net debit rather than the gross leg amounts. Overall, the large-trade flow leans bearish on balance: although there was a notable upside call spread seeking a controlled rally, the bigger and more aggressive premium-selling call structures across the tape suggest traders were more focused on fading upside, harvesting premium, and positioning for limited near-term appreciation rather than chasing a strong breakout.

Strategy Reference

For traders seeking a low assignment probability on the sell side, the 170.0 call expiring on 2026-10-02 offers a more distant out-of-the-money strike than the 162.5 call, though the double short call structure already highlighted combines both into a credit spread to cap margin risk while still collecting premium.

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