CoreWeave calls are flying off the shelves today after the news of the expanded deal
CoreWeave Inc (NASDAQ:CRWV) stock is down 0.5% to trade at $88.46, even after the AI infrastructure maven announced an expanded $21 billion cloud deal with Meta Platforms (META). This is in addition to the prior arrangement of $14.2 billion, and signals Meta's commitment to AI alongside CoreWeave's focus on data center development. Separately, CoreWeave also announced a proposed $3 billion convertible senior notes offering.
META is up 2..1% to trade at $625.20 at last check. CoreWeave stock initially traded as high as $92.64 out of the gate, but has since pivoted lower. CRWV is 27% higher on the year, and tested its overhead 126-day moving average this morning. A familiar floor has stepped up since November around $70.
Short sellers are piling on and could be burned. Short interest is up nearly 20% in the two most recent reporting periods, and the 60.73 million shares sold short account for 18.8% of the stock's total available float.
Options traders are moving in today. In just the first hour of trading, over 57,000 calls have changed hands, volume that's double the average intraday amount and more than double the number of puts traded. The weekly 4/10 95-strike call is the most popular, while the April 95 call is the most popular standard contract today.