Options activity on Xylem Inc. surged to unprecedented levels on Thursday, with call volume reaching 19,248 contracts by 10:50 a.m. ET, the highest on record, according to market data. Total options volume for the stock hit 24,480 contracts, with calls outnumbering puts nearly four-to-one.
The bulk of call activity clustered on September 18 expiry options at $115, $120, and $130 strikes, accounting for 19,200 contracts combined. Open interest at the $120 and $130 calls stood in the thousands, while put volume totaled 5,232 contracts. A single October $100 put represented 4,800 contracts, with open interest of 32.
Volatility metrics showed a marginal increase in 3-month implied volatility to 27.92%, while the 90/110 skew declined by 4.18 points to 1.02%. Xylem's shares were down 1.35% at $111.47, near the 52-week low of $105.29, with the 14-day RSI at 39.45, approaching oversold territory. Technical indicators showed strong sell signals across most timeframes, with all major moving averages positioned above the current price.
The surge in call options follows Xylem's Q2 earnings beat on earnings per share and the announcement of a new CFO. The company also disclosed a $1.46 billion acquisition aimed at high-growth data center markets. Analysts maintain a consensus price target of $153.88, with a high estimate of $180.
