Credo Technology Holding (CRDO) saw pronounced options activity Wednesday as traders positioned for both downside protection and rebound opportunity following the stock's sharp post-earnings selloff.
Shares fell approximately 18.5% to $168.35 as of 11:30 AM EDT on September 2, 2026, after the company reported a strong earnings beat that was overshadowed by gross-margin compression and concerns about the optical ramp.
Total options volume reached 62,202 contracts through 10:50 AM New York time, with puts accounting for 33,471 contracts — 53.8% of the total — and calls at 28,731, yielding a put/call volume ratio of 1.16, indicating modestly bullish positioning despite the broader sell-off.
Among the most notable flows, traders absorbed 4,239 October 16 $115 puts against just nine in prior open interest, representing roughly 31.7% below the current share price and signaling what the data pointed to as tail-risk hedging. For near-term downside coverage, 1,416 September 18 $160 puts were traded against 371 in prior open interest, sitting approximately 4.96% below the market price.
On the upside side, 1,233 October 16 $220 calls were taken up from a prior open interest of 164, while short-dated call activity included 1,480 September 4 $185 calls against 175 in prior open interest and 1,108 September 4 $180 calls from just 89 prior contracts, suggesting speculative bets on a near-term bounce or covered-call writing.
Implied volatility dynamics also shifted: three-month implied volatility dropped 9.36 percentage points to 72.11%, even as the 90/110 skew rose 0.51 points to 0.22, reflecting some re-pricing of tail risk even as outright vol contracted.
The selloff came despite an earnings beat, with investors instead focusing on compressed gross margins and execution questions around the company's optical growth trajectory.
