Options Traders Flash Caution Before Earnings Wave

Pre-earnings options activity is sending sharp signals across several names. Three stocks stand out with unusual positioning ahead of scheduled prints.

IRDM topped the options caution watch today. An activist stake looms over Iridium's upcoming results. Options traders are pricing in risk. The telecom stock has surged 177% year-to-date. Short interest sits at just 3.1% of free float. That low short base makes any options-driven spike more volatile.

PAYX is seeing call skew intensify into earnings. The payroll giant carries 8.3 days-to-cover. Its RSI has slipped to 39.6, suggesting recent price weakness. Options bulls appear to be positioning for a bounce. Short interest stands at 6.1% of free float.

THO shows the most extreme caution signal. THOR Industries carries 13.9 days-to-cover and a short score of 64.9. The stock is down 32% year-to-date. Options are flashing extreme caution into Thursday's quarterly print. Peer RV stocks F and WGO are caught in the same consumer spending crossfire.

WOR offers an interesting contrast. Worthington Enterprises bears are pulling back as the stock rebounds into its print. Short availability sits at 2,510% of short interest. That massive availability reading signals shorts have ample room to add — but are choosing not to. Options traders appear to be fading the bearish thesis near-term.

The broader backdrop is a Nasdaq 100 recovering from its summer sell-off. AI FOMO is returning to markets. That risk-on tone may explain why PAYX call buyers are stepping up despite the weak price trend.

Not financial advice.