Varonis Systems (VRNS) shares plummeted 5.04% intraday on Tuesday, as heavy pre-earnings options trading revealed a strong bearish tilt among investors.

Pre-earnings options volume was 1.8 times the normal level, with puts leading calls by a ratio of 5:1. Implied volatility in the options market indicated that traders were bracing for a 10.9% swing in the stock price following the company's upcoming earnings report. The lopsided put activity suggests that market participants were hedging against—or speculating on—a potential downside move, which likely contributed to the selling pressure during the session.