Options bulls were targeting CoreWeave stock before it reversed lower
CoreWeave Inc (NASDAQ:CRWV) was one of the busiest names in the options market over the past two weeks, with 3,289,913 calls and 1,123,775 puts exchanged. The most popular contract by far was the July 85 call. All this bullish positioning came as CRWV was sprinting higher.
CRWV is down 8.3% at $166.94 at last check, pulling back from Friday’s record high of $187. The equity is also fresh off its sixth-straight weekly win and has surged more than 354% since going public in March at $39. After such a steep rally, today’s drop could mark the start of a sentiment unwind or a wave of profit-taking.
Short interest is already on the rise, up 30.4% over the last month. The 15.05 million shares sold short now account for 6.3% of the stock’s available float. Meanwhile, analysts remain skeptical, with 13 of 19 still rating CRWV a “hold” or worse.
With profit-taking starting to creep in and sentiment still mixed at best, CoreWeave stock could be entering the kind of environment that tends to catch overly bullish traders off guard and create openings for contrarians watching from the sidelines.