Options volume is running at five times the amount typically seen at this point
Archer Aviation Inc (NYSE:ACHR) is making noise in the options pits today, thanks to rumors of a partnership with electric vehicle (EV) giant Tesla (TSLA). The speculation began after the aviation name shared a video showcasing its Midnight aircraft alongside a Tesla Optimus robot. Adding fuel to the fire, Tesla shared a video on X of an object that looked like a turbine featuring its logo.
In response, 428,000 calls and 90,000 puts have crossed the tape so far today, which is more than five times the volume typically seen at this point. The most active contract by far is the weekly 10/10 12-strike put, followed by the October 13 call, with new positions being opened at both.
The options pits signaled a short-term bearish bias prior the partnership rumors. This is per the equity's Schaeffer's put/call open interest ratio (SOIR), which stands in the 73rd percentile of annual readings. A further unwinding of pessimism could keep tailwinds at ACHR's back.
The security was last seen up 16.7% at $13.51, and earlier surged to its highest level since July after Friday blasting through resistance at the 80-day moving average. Pacing for its fourth-straight gain and best day since since April 9, the security now sports a 100.8% six-month lead.
Some of today's pop could be attributed to short covering. Short interest rose 9.3% over the last two weeks, and now makes up for 18.7% of the stock's available float, or about three days' worth of pent-up buying power.
