Wolfspeed Options Volume Surges as Share Price Drops

Heavy call and put activity concentrates in long-dated call spread and near-term put spread as volatility eases

Options activity in Wolfspeed Inc. accelerated early Friday, with total contracts traded rising to 35,618 by 10:11 a.m. New York time. Calls dominated volume while the stock declined roughly 4.5% to $35.57. Two multi-leg trades - a January 2027 call spread and a July 2026 put spread - accounted for the bulk of contracts. Measured volatility fell and the skew moved lower.

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Key Points

Total options contracts traded reached 35,618 by 10:11 a.m. New York time on Friday, with calls at 25,433 and puts at 10,185.
A January 15, 2027 $60/$45 call spread represented 24,680 contracts, including 12,340 $45 calls (open interest 4,121) and 12,340 $60 calls (open interest 25,696).
A July 17, 2026 $40/$50 put spread accounted for 10,000 contracts, comprised of 5,000 $40 puts (open interest 528) and 5,000 $50 puts (open interest 5,723).
Three-month implied volatility dropped 2.98 percentage points to 128.32%, and the three-month 90/110 skew declined 7.92 percentage points to -7.80 percentage points.

Wolfspeed Inc. experienced a notable spike in options trading during morning session on Friday, with exchange data compiled by Bloomberg showing 35,618 contracts changing hands by 10:11 a.m. New York time. The move in derivatives came as the underlying equity declined 4.52% to trade at $35.57.

Call activity outpaced puts, with call volume reaching 25,433 contracts compared with 10,185 contracts for puts. Much of that activity was clustered in two structured positions: a long-dated January 15, 2027 call spread and a nearer-term July 17, 2026 put spread.

The January 15, 2027 call spread - composed of $60 and $45 strikes - represented 24,680 contracts of the total. That breakdown included 12,340 contracts of the January 15, 2027 $45 calls, which showed open interest of 4,121 contracts, and 12,340 contracts of the January 15, 2027 $60 calls, with open interest of 25,696 contracts.

Separately, a July 17, 2026 put spread with $40 and $50 strikes accounted for 10,000 contracts. This spread consisted of 5,000 July 17, 2026 $40 puts, with open interest of 528 contracts, and 5,000 July 17, 2026 $50 puts, with open interest of 5,723 contracts.

Market-implied measures of volatility also moved on the session. Wolfspeed's three-month volatility eased by 2.98 percentage points to 128.32%. The stock's three-month 90/110 skew declined by 7.92 percentage points to -7.80 percentage points. The report notes that open interest figures are as of Thursday unless stated otherwise.

Context and interpretation

The trading pattern shows heavy concentration in a single long-dated call spread and a concentrated near-term put spread, alongside a substantial tilt toward call volume. At the same time, implied volatility and skew have moved lower on a three-month basis. Taken together, these facts describe a session in which derivative positioning and price action in the underlying equity were tightly linked.

Because open interest was reported as of Thursday where not otherwise specified, some positions may reflect activity established earlier in the week.

Risks

Concentration risk from large volume in a single long-dated call spread and a concentrated near-term put spread could amplify price moves if positions are adjusted - impacts derivatives traders and equity holders.
Declining three-month implied volatility may not reflect sudden shifts in market sentiment, leaving options holders exposed to unexpected moves - impacts options market participants.
Open interest figures are stated as of Thursday except where noted, so some reported positions may predate the observed session activity and could change, creating uncertainty for investors monitoring real-time flows - impacts traders relying on open interest data.

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Wolfspeed Options Volume Surges as Share Price Drops

Key Points

Risks

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