Western Digital ended the session at 411.96 USD, down 3.51%.

Despite the pullback, large options activity leaned bullish, with a standout $9,600 put sale at the September 2026 $290.00 strike roughly 29.62% below spot. The flow was concentrated in short put selling rather than bearish bets, suggesting traders are using the dip to collect premium while signaling confidence that WDC will stay well above $290.00 through next year.

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Options Indicators

WDC’s implied volatility is 66.91%, while its IV percentile stands at 13.55%, indicating that although the absolute IV level is still notable, it sits near the lower end of its own historical range. In other words, current option pricing is relatively cheap versus the stock’s recent volatility backdrop rather than elevated, and the IV/HV ratio of 1.18 suggests implied volatility is only modestly above realized volatility, pointing to a fairly restrained premium in current option prices. The Call/Put volume ratio is 1.01, reflecting a balanced near-term positioning despite the constructive large-trade bias.

Large Trades

A PUT sale worth $9,600 targeted the September 18, 2026 $290.00 strike, with the contract out of the money against the current stock reference of $411.96. As a single-leg trade, this is a bullish posture because the seller is effectively expressing confidence that WDC will remain above $290.00 into expiration, allowing the option to decay and the premium to be retained. The deep out-of-the-money strike also suggests a willingness to take on downside assignment risk only at a much lower level, which is consistent with a constructive or accumulation-oriented view rather than an outright bearish bet.

Overall, the large-trade flow points to a bullish bias in WDC. The notable activity was concentrated in short put selling, which typically reflects confidence in price stability or moderate upside while seeking to collect premium, and the absence of meaningful bearish large-trade activity reinforces that positive tone. Taken together, the block flow suggests traders are comfortable underwriting downside risk at lower strikes and are positioning for WDC to stay firm rather than break sharply lower.

Strategy Reference

For a slightly higher floor with an even lower assignment probability, a seller could use the September 2026 $270.00 put; alternatively, a $290.00/$250.00 short put spread reduces margin requirements while retaining a bullish, premium-collection stance.