Xylem Inc’s options market saw an unusually large call spread trade Monday, with 10,087 contracts exchanged in a $120/$130 spread maturing September 18, 2026. Nearly all contracts were calls, with 5,000 at each strike, while put volume totaled just 19, indicating strong institutional bullish positioning.
Open interest stood at 1,791 contracts at the $120 strike and 60 at the $130 strike, according to options data. The 3-month implied volatility rose 0.53 percentage points to 27.24%, while the 90/110 skew declined 0.38 points to 3.02%, reflecting reduced demand for downside protection.
Xylem’s shares advanced 1.32% to $114.92 during the session, extending gains from a recent low of $105.29. The stock remains well below its 52-week high of $154.27, though the mean analyst target stands at $153.56, with a high forecast of $180. Real-time pricing showed the stock at $113.94 as of August 21, up 0.44%.
The options activity coincides with Xylem’s $1.46 billion acquisition of Cornell Pump and Roper Pump, a deal expected to be earnings-accretive by 2027. The company has highlighted fast-growing data center markets as a key growth driver for the combined businesses.
