ARM closed at 307.49 USD, up 5.18%.
Large options trades in ARM skewed bearish despite the solid daily gain. The standout flow was a $425 thousand net-credit bear call spread, indicating an institutional bet that upside will remain capped. Other notable activity was limited, leaving this premium-selling structure as the clearest signal of large-trader positioning.
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Options Indicators
ARM currently has an implied volatility (IV) of 73.83%, while its IV percentile stands at 62.55%, which places current volatility in a neutral historical range rather than an extreme one. Even so, with the IV/HV ratio at 0.79, implied volatility is running below realized volatility, suggesting the options market is not especially rich at current levels and appears relatively reasonable in its pricing. The Call/Put volume ratio is 2.08.
Large Trades
A bear call spread collecting a net credit of $425 thousand was the standout large trade in ARM, built by selling the 325.0 call and buying the 335.0 call for the 2026-10-09 expiration. Both strikes sit out of the money versus the $307.49 reference share price, which makes this a defined-risk bearish call spread aimed at premium collection rather than aggressive upside participation. By selling the lower-strike call and capping risk with the higher-strike long call, the trader is expressing the view that ARM is unlikely to rally materially above 325.0 by expiration, or at least that upside will remain limited enough for the spread to retain value.
Overall, the large-trade flow in ARM leaned clearly bearish. The only meaningful block identified was a premium-selling bear call spread opened above the current stock price, indicating expectations for capped upside and a preference to monetize elevated call premium rather than position for a bullish breakout. Taken together, the bulk-order activity points to a cautious-to-negative institutional stance, with traders appearing to favor rangebound or weaker price action over the life of the trade.
Strategy Reference
For traders seeking a low assignment probability on the short side, selling the 400.0 call for the nearest monthly expiration offers a more conservative alternative, though it also collects a smaller premium than the 325.0 short call used in the institutional spread.