Formula founder Vida said in a post on X that it sold nearly $7 million worth of put options on the day, with most of the contracts set to be exercised in about one month. According to Vida, the sell-off in the storage segment is already close to an emotional extreme, while implied volatility for storage-related stocks is sitting at a historically top percentile. Vida also said demand tied to AI remains intact and that the underlying fundamentals have not changed. Addressing why the trades were placed at strike levels that are harder to fill instead of prices closer to the current market, Vida said the preference is for lower risk and steadier returns. As an example, Vida pointed to the MU 660 put option expiring in one month, saying that selling 15 contracts now would immediately generate $47,000 in profit. If MU falls below 660 in a month and assignment is triggered, Vida said it would buy in for $1 million.
Vida said in a post on X that it sold nearly $7 million in put options on the day, with most of those contracts set for exercise in one month.
Vida said the decline in the storage segment is at least nearing an emotional extreme, and that implied volatility for storage stocks is at a historically highest percentile. At the same time, Vida said AI-related demand continues and that fundamentals have not changed.
On the decision to sell at strike prices that were "hard to fill" rather than levels closer to the current market, Vida said the approach reflects a preference for lower risk and steadier returns.
As an example, Vida cited the MU 660 put option expiring in one month, saying that selling 15 contracts at current levels would bring in $47,000 in immediate profit. If MU drops below 660 after one month and assignment is triggered, Vida said it would buy in with $1 million.
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