Options activity on Affirm Holdings surged to 23,596 contracts on Thursday, with call options dominating as traders positioned for the buy-now-pay-later lender’s earnings release after the bell.
Call volume reached 14,522 contracts, outpacing put volume by more than 5,000 contracts, according to options data. The most active bullish strikes were set at $77 and between $80 and $85, expiring the following day. At the $77 strike, 2,078 contracts traded against an open interest of just 183, while a $80/$85 call spread saw 1,553 contracts exchanged. On the defensive side, put spreads at $72–$77 totaled 720 contracts, and a November $77.50 put saw 670 contracts.
Implied volatility for the 3-month tenor fell to 63.37%, down 0.56 points, while the 90/110 skew rose to 1.42%, up 1.02 points. Affirm’s beta stands at 3.62, reflecting elevated volatility relative to the broader market.
Shares of Affirm were trading at $76.50, down 1.43% on the day, well below the company’s recent highs near $100. The stock has delivered a slightly negative 1.5% total return over the past year. Consensus estimates project earnings per share of $0.35 on revenue of $1.11 billion, both showing sequential improvement. The mean analyst price target is $91.67, implying nearly 20% upside from current levels. Of 34 analysts covering the stock, 25 rate it a buy. In the prior quarter, Affirm delivered a 76% earnings surprise and a 4.4% revenue beat.
