Option Focus | ARM Sees $192 Million Deep In-the-Money Put Purchase on 2027 $360 Strike, Signaling Institutional Bearish Stance

Option Witch
Yesterday

ARM closed at 293.67 USD, a 3.65 % gain.

The session was marked by a standout $192.23 million deep in-the-money put purchase on the January 15, 2027 $360.00 strike, with 22,500 contracts bought. The trade dominated the large-order flow, signaling a clear institutional bearish stance. No offsetting bullish block activity appeared, leaving the bulk-order picture firmly tilted toward downside protection or an outright negative directional bet on ARM.

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Options Indicators

ARM’s implied volatility stands at 77.27%, while its IV percentile is 69.32%, which places current volatility conditions in the upper end of the neutral range, just below the threshold where options would generally be considered expensive. With the IV/HV ratio at 0.82, implied volatility is running below historical volatility, suggesting current option premiums are not especially stretched relative to the stock’s realized movement and may be priced at a fairly reasonable level.

The Call/Put volume ratio is 1.42.

Large Trades

A put purchase worth $192.23 million was the standout large trade, with 22,500 contracts bought on the January 15, 2027 $360.00 put. With ARM referenced at $293.67, this strike sits in the money, which makes the position both expensive and highly sensitive to downside in the stock. As a single-leg bearish trade, it signals a clear defensive or speculative view that ARM could remain under pressure or decline further, while also suggesting the buyer was willing to pay a substantial premium for meaningful downside exposure over a long-dated horizon.

Overall, the large-trade flow points clearly bearish. The fact that the only displayed block was a sizable in-the-money long put, with no offsetting bullish large-trade activity, suggests institutional positioning is tilted toward downside protection or an outright negative directional bet. Taken together, the bulk-order figures indicate cautious to pessimistic sentiment around ARM rather than confidence in near- to medium-term upside.

Strategy Reference

For a lower assignment probability on the bearish side, a seller could consider the January 15, 2027 $220.00 put, which sits far out of the money relative to the $360.00 strike in focus, or a bear put spread such as buying the $360.00 put and selling the $220.00 put to reduce margin and cost while still benefiting from continued downside.

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.

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