Option Focus | Circle Internet’s $2.34 Million Put Buy on $70 Strike Signals Bearish Institutional Hedging Despite Cheap IV Percentile

Option Witch
44 mins ago

Circle Internet closed at $82.91, rising 0.90%.

Despite the modest share-price gain, institutional options flow showed a distinctly bearish tilt. A single $2.34 million put purchase overshadowed the session’s otherwise ordinary activity, revealing that at least one large player was willing to pay up for long-dated downside protection. With implied volatility sitting at a low percentile relative to Circle Internet’s own history, the trade stands out as a deliberate, premium-conscious hedge rather than a chase of rich options pricing.

>>>Start OPTIONS trading & earn up to SGD 200 in rewards!

Options Indicators

Circle Internet currently has an implied volatility of 78.09%, while its IV percentile is just 15.94%, which indicates that although the absolute level of implied volatility appears high, it is still low relative to its own historical range and options are therefore on the cheaper side rather than expensively priced. With an IV/HV ratio of 0.82, implied volatility is also running below historical volatility, suggesting option premiums are not especially stretched versus the stock’s realized movement.

The Call/Put volume ratio is 2.16.

Large Trades

A PUT buy worth $2.34 million stood out as the key large trade, with 4,000 contracts purchased on the 70.0 strike expiring January 15, 2027. With CRCL referenced at $82.91, this put was out of the money at the time of the trade, making it a clear downside position rather than intrinsic-value protection. The buyer was paying premium for a longer-dated bearish view, likely expressing expectations of meaningful downside over time or seeking portfolio hedging against a sizable pullback toward or below the 70 level.

Overall, the large-trade flow in CRCL was clearly bearish. The entire notable block activity was concentrated in an out-of-the-money long put purchase, which signals willingness to spend meaningful premium for downside exposure rather than upside participation. That pattern points to cautious or negative institutional sentiment, with the options flow suggesting expectations for weakness or a desire to guard against future declines.

Strategy Reference

For traders looking to collect premium without paying for expensive long puts, selling the $55.00 strike put expiring January 15, 2027 offers a lower assignment probability given its deeper out-of-the-money distance, while the existing $70.00 long put flow can serve as a reference for constructing a bear put spread to cap upfront cost.

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.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10