CrowdStrike Sees Big Money Jump Into Options Amid Rising Demand for Hedge Against Price Slump
Big money is jumping into $CrowdStrike (CRWD.US)$ put options amid increasing demand for protection against deepening losses as the stock slumps more than 8%.
CrowdStrike's stock fell to $314.56 Friday morning after CEO George Kutz posted on LinkedIn that the company's customers were impacted by a defect found in a content update for Microsoft Windows hosts. The event caused a global outage, forcing airlines to ground flights, and disrupted operations at banks, hospitals and brokerages Schwab and E-Trade in New York, MarketWatch reported.
Put options giving the holders the right to sell Crowdstrike stock at $300 were the most active contracts across 19 expiration dates stretching through Dec. 18, 2026, data tracked by moomoo showed. More than 18,000 of those puts changed hands before 11 a.m. Friday.
In total, 220,190 put and call options with different strike prices traded so far, landing CrowdStrike in the fifth slot for the most-active stock options, behind $NVIDIA (NVDA.US)$ , $Tesla (TSLA.US)$, $Apple (AAPL.US)$and $Advanced Micro Devices (AMD.US)$. (To see the options ranking, click here.)
About just half an hour into Friday's trading, a transaction was posted involving an active seller who wrote put options that give the holders the right to sell 313,000 Crowdstrike at $240 each by Sept. 20, data tracked by moomoo showed. The seller stands to collect a premium of $2.1 million for those put options.
(To see the options market page, click here.)
If the holders eventually exercise the puts, the options seller's cost of buying the stock will be that strike price of $240 plus fees, minus the premium paid by the buyer of $6.70 per share. That compares with the stock's current price of more than $300 a share.
Another unusual bullish trade was posted before 10 a.m. Friday involving a buyer who paid a premium of $640,000 for call options that gives him or her the right to buy 100,000 CrowdStrike shares at $400 by Sept. 20, data showed.
Amid the stock sell-off, the stock continues to attract money. Fund inflows outpaced outflows by $545.3 million as of 10:50 a.m. Friday. That's helping trim this month's net outflow from the stock.
Technical indicators tracked by moomoo are also flashing a positive signal, with 10 of them showing that the stock could be oversold and the trend may turn bullish.
Share your thoughts on CrowdStrike.
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Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
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Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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