Option Focus | Seagate’s $21.42 Million Bear Call Spread Sells $950 Calls Against $1,150 Calls, Signaling Institutional Skepticism Toward Sustained Upside

Option Witch
Yesterday

Seagate’s shares closed at $887.09, rising 4.49%.

Seagate’s option tape was dominated by a single bearish institutional block: a $21.42 million net credit bear call spread. The trade sold 5,000 November 2026 $950 calls and bought 5,000 November 2026 $1,150 calls, creating a defined-risk bet against sustained upside. Overall flow leaned bearish despite the stock’s 4.49% gain, with elevated call premium being monetized rather than chased.

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

Options Indicators

Seagate’s implied volatility is 67.78%, while its IV percentile stands at 19.12%, which indicates that although absolute IV is relatively high, it sits near the low end of its own historical range. In other words, current option pricing appears relatively cheap, and volatility is on the low side versus where it has traded in the past. With an IV/HV ratio of 1.07, implied volatility is only modestly above realized volatility, suggesting the options market is not assigning a particularly aggressive premium to future movement.

The Call/Put volume ratio is 1.73.

Large Trades

A bear call spread collecting a net credit of $21.42 million was the standout large trade in STX, built by selling 5,000 Nov. 20, 2026 $950 calls and buying 5,000 Nov. 20, 2026 $1,150 calls. With STX referenced at $887.09, both call strikes were out of the money, and this structure reflects a defined-risk bearish-to-neutral stance. The trader is taking in premium upfront while expressing the view that STX is unlikely to rally materially above $950 by expiration, with the long $1,150 call serving as upside protection. As a spread strategy, its size should be read through the net credit rather than gross leg notional, and the intent is primarily premium collection combined with a directional bet against a major upside move.

Overall, the large-trade flow points clearly to a bearish institutional tone in STX. The only meaningful block activity was a sizeable bear call spread, which signals skepticism toward sustained upside and a preference to monetize elevated call premium while keeping risk capped. In practical terms, the flow suggests expectations for STX to remain below the short-call strike area over time, reinforcing a cautious to negative market view rather than a bullish breakout narrative.

Strategy Reference

For a low assignment probability short call, consider selling an out-of-the-money call above $1,100, or use a wider $950/$1,200 bear call spread to reduce margin while keeping a bearish-to-neutral stance.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10