Options Skew Builds Ahead of Key Earnings

CrowdStrike options are flashing the loudest signal this week. Put skew on the cybersecurity firm is rising with the June 18 expiry front and center — right after its earnings print on June 17. ORTEX data shows short interest sits at just 3% of free float. But the options market is telling a different story. A historical pattern of post-earnings selling is putting traders on edge.

NVDA options chains stretch across 29 expiry dates through September. That density of open expiries reflects massive ongoing trader interest. Short interest is a lean 1.2% of free float. Bulls dominate the flow here.

Earnings plays are also clustering around Kroger and Jabil, both expiring June 18. Kroger carries 4.9% SI % FF. Jabil sits at 2.8%. Neither is heavily shorted. But options traders are active ahead of both reports.

General Mills stands out on the short side. SI % FF hits 9.3% — the highest in this group. Analysts cut the stock this week. That combination of elevated short interest and a downgrade often pulls options skew toward puts.

Gilead Sciences received an analyst upgrade today. Its SI % FF is just 2.1%. Options availability is effectively unlimited. Bullish flow into the July expiry could build from here.

This article is not financial advice.