tech
Options traders love this under-the-radar AI play
For an $18 billion market-cap company, data-center owner Iren trades like one of the AI giants.
TL;DR
- Iren, an $18 billion market-cap data-center company, is seeing options trading volume comparable to AI giants.
- The company had two of the top 20 biggest options trades on Thursday, totaling $173 million in premium, with 73% in calls.
- Iren's options volume surpassed that of Equinix and Digital Realty Trust combined, despite their much larger market caps.
- A $36 million long strangle trade was initiated, betting on a significant price move in either direction.
- Iren has gained 770% in the past year by refocusing on AI customers after previously being involved in crypto and bitcoin mining.
- Implied volatility before earnings suggests a 14% swing, though traders often overpay for options around earnings.
- Historically, the median actual stock move around earnings has been 6%, while the average implied move was 12%.