Options markets are flashing clear bullish signals across tech and cloud names this week, driven by earnings beats and corporate shakeups.
Akamai Technologies grabbed options traders' attention Friday after shares surged more than 29% overnight. The move followed a strong earnings beat. Open interest is building ahead of the May 22 expiry, suggesting traders are positioning for further gains rather than fading the rally.
Cloudflare saw a different dynamic. The company announced 20% job cuts as it pivots to an "Agentic AI-First" strategy. Its short score sits at 31.6 and RSI is at 70. Traders have active expiries through July. The layoff news has shifted sentiment — call volumes dominated early flow.
The media merger story is reshaping options desks too. Warner Bros. Discovery has active contracts running out to late July. The stock is down 5.5% year-to-date. Options flow shows modest bullish positioning into merger clarity, with Netflix also in play as the Paramount Skydance deal surfaces a reported $2.9B loss and a "termination fee" clause tied to Netflix.
Broader market options sentiment is bullish. ORTEX data shows 100% positive options flow over the past week in large-caps including Prologis, Marsh & McLennan, and General Dynamics. That breadth of call-side dominance points to growing risk appetite across institutional desks.
AI memory supply constraints are also lifting sentiment in chip-adjacent names. Reports that Alphabet, Meta, and Microsoft are lining up to fund SK Hynix capacity are fuelling call flow in large-cap tech. Meta alone has expiries running through late July.
Options markets are pricing in continued upside. The burden of proof now shifts to earnings delivery.
ORTEX Market Intelligence content is generated by AI from a snapshot of ORTEX's proprietary data. Content is informational only and does not constitute investment advice.
