Options activity around Celsius Holdings Inc (CELH) took on a decidedly bullish slant on a day when the stock suffered a steep decline. Traders bought 36,266 call contracts compared with 17,150 put contracts, according to the options flow, while the share price fell nearly 17% to $24.12 and pushed the stock to a new 52-week low.
Call-heavy flow into the sell-off
The imbalance in options volume - more than two calls for every put - is striking given the magnitude of the drop. That pattern can reflect different strategies: directional bets on a rebound, volatility-driven plays, or hedging activity to manage other positions. The most active strikes in the flow were the $30, $24.50, $35, and $50 calls with expirations in 2026. Open interest is particularly large at the $30 and $50 strikes, indicating that this is not solely a one-day speculative wave but includes longer-dated commitments.
By concentrating at those strikes, market participants are effectively paying for time - a classic long-dated options stance that leaves room for a recovery over the next one to two years.
Why the shares dropped
Fundamental developments prompted the share-price weakness. Celsius reported Q2 revenue of $817.9 million and earnings per share of $0.36, both missing estimates. The company said its flagship brand declined 12% year-over-year and margins compressed sharply. Those results drove shares down roughly 17.3% to $24.12 on the report.
On a longer horizon, the stock has fallen sharply: it is down 31.8% over the past 12 months and is trading near its 52-week low of $26.54, reflecting sustained pressure across the year.
Analysts remain split on valuations. The mean analyst target stands at $54.33, which implies a sizable upside from current levels, though six firms have trimmed their targets recently. A consensus fair value cited in the data is $41.24, also well above where the stock trades today.
Reading the options positioning
The options footprint offers several clues about market expectations and risk appetite:
- Aggressive call purchases: Heavy volumes at the $30, $35, and $50 strikes indicate some traders are banking on a material recovery or are attempting to capture a volatility spike.
- Open interest concentration: Hundreds to thousands of contracts in open interest at key strikes - notably $30 and $50 - suggest these are not merely impulsive one-day bets but part of longer-term structures such as covered-call programs, buy-writes, or short-hedge strategies.
- Put activity: While put volume is elevated relative to normal levels, it did not outstrip calls on the day, so outright bearish options speculation did not dominate the tape.
This mix points to a market that sees a potential for a sizeable move, but with participants divided between speculative upside and hedging against continued weakness.
Technical and volatility takeaways
On short-term technicals, the shares look oversold: the 1-hour relative strength index was around 21.6, while the daily RSI sat near 48.6. Short-term moving averages are in strong-sell territory, a configuration that often signals oversold conditions but not an assured reversal. Given the long-dated nature of much of the call activity, participants appear to be buying time for a potential turnaround rather than betting on an immediate snapback.
Bottom line
Heavy call buying into a pronounced decline signals that some traders view the sell-off as an opportunity or a volatility trade worth pursuing. However, company fundamentals are under strain after an earnings miss, a decline in the flagship brand, and compressed margins. The result is a high-risk, high-volatility setup: options markets are positioned for a possible rebound or a large move, even as underlying business metrics and recent analyst target cuts suggest caution.