Option Focus | CoreWeave’s Bull Call Spread and Deep OTM Put Sale Reveal Confident Upside Bet Despite 95% IV Rank

Option Witch
10/26

CoreWeave closed at USD 54.24, down 2.46%.

Large options trades show a clearly bullish tilt even as volatility remains highly elevated. The most notable flow includes a defined-risk bull call spread financed with a net debit and a very large sale of far out-of-the-money puts, both positioning for upside or stable downside through 2026 and 2027 expirations. This combination of call-spread buying and deep put selling reflects confidence in CoreWeave above key support levels without aggressive open-ended speculation.

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Options Indicators

CoreWeave’s implied volatility stands at 120.75%, and with an IV percentile of 95.60%, current option volatility is clearly in an elevated regime where contracts are priced expensively relative to the stock’s own recent history. The IV/HV ratio of 1.33 further indicates implied volatility is running meaningfully above realized volatility, suggesting the options market is assigning a sizable premium to future movement expectations. In this setup, outright option buying faces a high volatility cost, while premium-selling approaches or defined-risk spread structures may offer a more efficient way to express a view.

The Call/Put volume ratio is 1.32.

Large Trades

A bull call spread with a net debit of $102,000.00 was one of the standout large trades, pairing the purchase of 3,000 Oct. 30, 2026 $57.00 calls with the sale of 3,000 Oct. 30, 2026 $58.00 calls. Both strikes sit out of the money versus the $54.235 reference stock price, and the structure is a defined-risk bullish vertical call spread. By paying a net debit, the trader is expressing a directional upside view while capping maximum profit above $58.00, suggesting a measured bullish bet rather than an aggressive open-ended chase; the use of the short higher-strike call also helps reduce premium outlay, making this a cost-efficient upside participation strategy.

A PUT sale worth $627,000.00 targeted the Apr. 16, 2027 $40.00 strike, with 1,100 contracts sold at an out-of-the-money level relative to the current stock price. Because the strike is well below spot, this trade reflects a bullish-to-neutral stance: the seller is effectively wagering that CRWV will remain above $40.00 through expiration, aiming to collect premium and potentially expressing willingness to own shares at a substantially lower effective entry level. The distance of the strike from spot makes it a relatively conservative bullish income trade and reinforces confidence in downside support rather than signaling concern about near-term weakness.

Overall, the large-trade flow is clearly bullish. The featured orders show traders favoring upside participation through a defined-risk call spread while also selling far out-of-the-money puts to harvest premium from perceived downside stability, a combination that points to constructive expectations for CRWV rather than defensive positioning. With bullish flow overwhelmingly dominating the bulk-order activity and bearish interest appearing negligible by comparison, institutional sentiment is best characterized as confidently positive with an emphasis on controlled upside exposure and comfort with lower-strike downside risk.

Strategy Reference

For premium sellers seeking a low-assignment-probability put strike, the $40.00 level already being sold in large size may serve as a reference for downside buffer, while traders preferring not to post wide-margin short puts could instead use a bull put spread such as buying a $35.00 put against the short $40.00 put to define risk while still collecting a net credit.

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