Option Focus | Coherent’s $9.71 Million Calendar Put Spread Collects Premium While Adding Long-Dated 150 Puts, Signaling Institutional Bearish Positioning

Option Witch
Yesterday

Coherent ended the session at $207.82, down 12.51% from the prior close.

Options flow showed a decisively bearish tone, led by a $9.71 million net-credit calendar put spread and a separate $1.95 million long-dated put purchase. The largest structure combined selling nearer-dated 250–260 puts with buying a longer-dated 300 put, while the second trade added outright protection at the 150 strike. Institutional activity was concentrated entirely in puts, signaling positioning for continued downside rather than a rebound.

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Options Indicators

Coherent’s implied volatility is 86.66%, and with an IV percentile of 56.18%, current volatility sits in a neutral range rather than at an extreme. Combined with an IV/HV ratio of 1.05, options appear fairly priced relative to the stock’s recent realized volatility, suggesting the market is assigning a moderate premium for forward uncertainty without signaling especially cheap or especially expensive option levels.

The Call/Put volume ratio is 0.49, underscoring the session’s put-heavy activity and bearish sentiment among options traders.

Large Trades

A calendar-style put combination with a net credit of $9.71 million was the largest featured trade, built as a four-leg put spread structure rather than a synthetic position. The trader bought 1,380 contracts of the 300.0 put expiring 2026-10-30 while selling 2,300 contracts of the 260.0 put, 1,230 contracts of the 255.0 put, and 1,230 contracts of the 250.0 put, all expiring 2026-10-23. Using the provided net figure, this was a net credit trade, which points to a premium-collecting and downside-positioning strategy that also uses longer-dated protection at the higher strike. With the stock reference price at 207.82, all listed strikes were in the money, indicating the structure was centered on downside exposure and near-term decay capture rather than upside participation.

A put buy worth $1.95 million was the other highlighted large trade, consisting of 1,200 contracts of the 150.0 put expiring 2027-06-17. This strike sat out of the money versus the 207.82 stock reference price, making it a longer-dated bearish wager or portfolio hedge aimed at protecting against a substantial decline over time. Overall, the large-trade flow was clearly bearish: the featured orders were concentrated entirely in put exposure, with the biggest structure combining short-dated premium collection with an embedded downside stance and the second trade adding outright long-put protection. Taken together, the block activity suggests institutional participants were positioning for weakness in COHR rather than a rebound.

Strategy Reference

For traders looking to collect premium without taking an outright bearish stance, selling out-of-the-money puts below the gap area—such as the 170 or 165 strike in the nearest monthly expiration—may offer relatively low assignment probability while still capturing elevated implied volatility. Alternatively, a bear put spread using the 200/180 strikes could express downside with defined risk and reduced margin compared to a naked long put.

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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