Struggling Sneaker Stock Sinks on C-Suite Exit

Sneaker maker On Holding Ltd (NYSE:ONON) is moving 7.9% lower to trade at $32.40 at last glance, as investors continue to react to the company's C-suite updates. Yesterday On Holding said its current CEO Martin Hoffmann will step down and remain an advisor to co-founders David Allemann and Caspar Coppetti, as the pair move into the co-CEO placard. The athleticwear maker has intentions to increase its scale globally, entering its "next growth phase."

ONON is now trading at its lowest mark since May and on track for its sixth loss in seven sessions. The equity has shed 30% over the past 12 months, with overhead pressure present at the descending 10-day moving average.

Options have been flying off the shelves in response to the C-suite buzz, with 18,000 calls and 23,000 puts exchanged so far today. This is quadruple the average intraday amount, with the weekly 5/1 27-strike put seeing ample sell-to-open activity.

ONON has made its way onto the short sale restricted (SSR) list with today's pullback. Currently, 6.2% of the stock's total available float is sold short. Short interest has dropped 15.7% in the past two reporting periods.

Options are looking affordable too, with ONON's Schaeffer's Volatility Index (SVI) of 51% standing higher than 27% of all other readings from the past year. In other words, near-term option traders are pricing in relatively low volatility expectations.