Option Focus | Strategy’s $4.75 Million Double Short Call Combo Signals Bearish Premium Collection, While Low IV Percentile Hints Options Are Relatively Cheap

Option Witch
Sep 26

Strategy closed at $158.61, down 1.86 percent.

The options tape was dominated by a $4.75 million net credit double short call structure targeting a neutral-to-bearish outlook, while a $970,000 net debit bull call spread provided a smaller bullish counterpoint. Despite high absolute implied volatility, the low IV percentile and depressed IV/HV ratio suggest option premiums are relatively cheap, creating an environment where aggressive premium collection stands out among large traders.

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Options Indicators

Strategy’s implied volatility stands at 74.94%, while its IV percentile is just 15.14%, which indicates that although the absolute IV level is high, it sits near the lower end of its own historical range and options are therefore cheaply priced on a relative basis, with volatility conditions leaning to the low side rather than elevated. This is further supported by the IV/HV ratio of 0.72, suggesting implied volatility is running below realized volatility and that current option premiums appear relatively inexpensive versus the stock’s recent actual movement.

The Call/Put volume ratio is 2.61.

Large Trades

A call premium-selling structure worth $4.75 million was the largest displayed trade, consisting of a same-direction double short call spread-like combination with both legs expiring on 2026-10-02: short 162.5 calls and short 170.0 calls, both opened out of the money against a $158.61 stock reference. As a spread strategy that includes both Sell Call legs, its size should be read by the provided net credit, which was a $4.75 million net credit. This positioning reflects premium collection and a view that Strategy is unlikely to make an aggressive upside move through those strikes by expiration, making it a neutral-to-bearish volatility-selling stance with capped upside risk characteristics.

A bullish call spread with a $970,000 net debit was the second highlighted trade, built by buying the 162.5 calls and selling the 170.0 calls for the same 2026-10-02 expiration, with both strikes also out of the money versus spot. As a classic bull call spread, the trade expresses a directional upside bet while reducing upfront premium cost through the short higher-strike call; its size is defined by the provided $970,000 net debit rather than the gross leg amounts. Overall, the large-trade flow leans bearish on balance: although there was a notable upside call spread seeking a controlled rally, the bigger and more aggressive premium-selling call structures across the tape suggest traders were more focused on fading upside, harvesting premium, and positioning for limited near-term appreciation rather than chasing a strong breakout.

Strategy Reference

For traders seeking a low assignment probability on the sell side, the 170.0 call expiring on 2026-10-02 offers a more distant out-of-the-money strike than the 162.5 call, though the double short call structure already highlighted combines both into a credit spread to cap margin risk while still collecting premium.

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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