AXT Inc closed at USD 60.61, an increase of 3.38% from the previous close.

The stock's upward move contrasts sharply with unusually bearish options flow, led by a single $1.23 million put purchase. The block trade represented the session's most significant order and stood out for its size and conviction, with no comparable bullish large trades to offset the defensive positioning. This divergence between rising spot price and heavy put buying suggests institutional participants are using the strength to initiate or add downside protection.

>>>Start OPTIONS trading & earn up to SGD 200 in rewards!

Options Indicators

AXTI’s implied volatility stands at 105.56%, but the IV percentile is only 3.59%, which indicates that despite the headline IV appearing very high in absolute terms, current option pricing is still sitting near the low end of its own historical range. Combined with an IV/HV ratio of 0.70, this suggests implied volatility is running below realized volatility, and overall the options market looks relatively cheaply priced rather than expensive. In this setup, premium buyers may be getting more favorable entry levels, while premium sellers have less of a volatility cushion than they typically would when IV is rich.

The Call/Put volume ratio is 1.79.

Large Trades

A PUT buy worth $1.23 million was the standout large trade, with 1,100 contracts bought on the October 16, 2026 $65.00 put. With AXTI referenced at $60.61, the strike sits in the money, which makes this a bearish position with intrinsic value already embedded. The buyer appears to be positioning for further downside or securing downside protection over a longer-dated horizon, and the in-the-money nature of the contract suggests a relatively high-conviction bearish view rather than a purely speculative far-out strike wager.

Overall, the large-trade flow points clearly bearish. The only meaningful block activity was concentrated in long puts, with no offsetting bullish large orders to balance that signal, indicating institutional-style positioning tilted toward downside expectations or protective hedging against further weakness in AXTI.

Strategy Reference

For traders unwilling to pay up for the in-the-money $65 put, a bear put spread using the October 2026 $60/$50 strikes could offer a defined-risk alternative with lower capital outlay, while a more premium-efficient short-term hedge could consider selling the $55 put against a long stock position to reduce cost basis if a pullback materializes.