Option Focus | Circle Internet's $1.29 Million Long Call Financed by Short Puts in Synthetic-Call Structure Signals Bullish Conviction Despite Cheap IV at 6.77 Percentile

Option Witch
2 hours ago

Circle Internet closed at $82.17, down 1.83%.

Options trading in Circle Internet showed substantial institutional positioning as a $1.29 million long call was financed by a heavy volume of short puts, forming a synthetic-call structure. The block trade dominated the session, with the overall flow leaning decisively bullish even as the stock pulled back from recent levels and implied volatility remained cheap relative to the name’s own historical trading range.

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Options Indicators

Circle Internet currently shows implied volatility of 74.19%, while its IV percentile is just 6.77%, indicating that although the absolute level of implied volatility is high, it remains low relative to its own historical range and options are therefore cheaply priced rather than expensive. With the IV/HV ratio at 0.78, implied volatility is also running below historical volatility, suggesting option premiums are not especially rich versus the stock’s realized movement.

The Call/Put volume ratio is 1.70.

Large Trades

A cross-expiration three-leg combination with a net debit of $218,700 was the standout large trade in CRCL, and it reads as a bullish financing structure rather than a simple outright option purchase. The package involved buying 1,139 contracts of the June 17, 2027 $125.00 call for $1.29 million while simultaneously selling 2,223 contracts of the April 16, 2027 $50.00 put for $566,900 and selling 2,601 contracts of the December 18, 2026 $60.00 put for $507,200, with all three legs out of the money versus the $82.17 reference stock price. Because the structure combines a Buy Call with Sell Put legs, it is best understood as a synthetic-call style bullish position, expressing upside conviction while using short puts to offset much of the premium cost. The long-dated upside call targets substantial appreciation, while the short puts suggest the trader is comfortable taking downside assignment risk at lower price levels in exchange for financing that bullish exposure.

Overall, the large-trade flow points clearly bullish. The only highlighted institutional-sized trade was a net-debit structure centered on long upside exposure and financed with out-of-the-money short puts, which is typically consistent with confidence in higher future prices rather than defensive positioning. Taken together, the block activity suggests traders are positioning for meaningful upside in CRCL over time and are willing to absorb downside obligation at lower strikes to gain that exposure more efficiently.

Strategy Reference

For traders seeking lower assignment probability on the short side, selling the December 2026 $50.00 put or the April 2027 $45.00 put may offer a more conservative entry given the stock’s current level and the existing large positioning at $50.00 and $60.00 strikes, while a call spread using the $110.00/$125.00 June 2027 range could express bullish upside without the full premium cost of a naked long call.

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.

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