Options activity in Synopsys Inc surged to 9,690 contracts by 2:40 p.m. ET on Tuesday, with call options outnumbering puts by a margin of nearly 1.6 to 1. The volume, which included 5,949 call contracts against 3,741 puts, suggests investors are betting on a near-term rebound despite the stock trading near its 52-week low of $366.
The most active strategy involved a diagonal spread, with 1,226 contracts executed on the August 28 $420 call paired against the October 16 $500 call. Open interest stood at 261 for the August $420 call and 773 for the October $500 call, indicating longer-dated optimism. A vertical call spread between the August 28 $480 and $510 strikes accounted for 612 contracts, though open interest was significantly lower.
Volatility metrics reflected heightened interest, with 3-month implied volatility rising 0.96 points to 48.25%. The 90/110 skew, a measure of demand for out-of-the-money calls versus puts, declined 0.79 points to 0.33, further signaling a tilt toward upside bets.
Synopsys shares were up 0.83% at $412.18, a modest gain given the options volume. Analyst price targets remain elevated, with the average target near $560 and the highest at $650. Over the past year, the stock has declined 31.4%, underscoring the contrast between recent performance and the options-driven optimism.
