Option Focus | Strategy's $1.03 Million Bull Call Spread Targets 167.5 by 2026, Yet Dominant Bear Call Spreads and Put Buying Reveal Institutional Caution

Option Witch
10/03

Strategy closed at $160.01, down 0.31%.

Large options trades showed a split personality: a $1.03 million bullish debit call spread targeting $167.5 for October 2026, alongside heavy bearish credit call spreads and put buying. The net options flow leaned defensive, with institutions selling premium and hedging downside despite one notable directional upside wager.

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Options Indicators

Strategy currently has an implied volatility (IV) of 69.73%, while its IV percentile is just 6.77%, indicating that although the absolute IV level remains high, it sits near the low end of its own historical range. Combined with an IV/HV ratio of 0.88, this suggests implied volatility is running below recent realized volatility, so options appear relatively cheaply priced and current volatility expectations are on the low side versus what the stock has actually been delivering. The Call/Put volume ratio is 2.28.

Large Trades

A bullish call spread with a net debit of $1.03 million was the largest displayed trade, consisting of a purchase of the 160.0 call and a sale of the 167.5 call for the 2026-10-09 expiration. With Strategy referenced at 160.01, the long 160.0 call was essentially in the money, while the short 167.5 call was out of the money. This structure expresses a defined-risk upside view, with the trader paying premium upfront to participate in a continued rise toward the upper strike while capping gains above 167.5. The net debit nature shows this was a directional bullish wager rather than premium collection, and it suggests the buyer expects moderate upside over the life of the trade rather than an extreme breakout.

A bear call spread with a net credit of $796,500 was the other displayed large trade, built by selling the 165.0 call and buying the 172.5 call for the same 2026-10-09 expiration. Both strikes were out of the money versus the 160.01 reference price, which makes this a defined-risk bearish-to-neutral income strategy centered on the view that Strategy will remain below 165.0 or at least fail to rally materially through that level. The trader collected premium upfront, so the strategic intent is primarily premium collection tied to a capped bearish outlook, with the long 172.5 call serving as protection against an outsized upside move.

Overall, the large-order flow leans bearish. Although there was one meaningful bullish call spread seeking upside exposure, the broader block activity was dominated by bearish structures and put buying, indicating more demand for downside positioning and for trades that benefit if Strategy stalls or weakens. The presence of call-credit spreads alongside multiple bearish put purchases suggests institutional participants are more focused on limiting upside and positioning for softness than on chasing a sustained rally.

Strategy Reference

For income-oriented sellers wary of the bearish block flow, a November 2025 145.0 out-of-the-money put sale could provide a lower assignment probability outside the displayed large-trade strikes; alternatively, a shorter-duration 155.0/147.5 bull put spread limits margin while positioning for rangebound support.

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