Story
Academy Sports Options Volume Surges to 7-Month High on Bullish Bets
Summary
Trading in Academy Sports & Outdoors options reached its highest level since December, driven by a significant volume of call contracts betting on the stock's price rising. The activity coincided with a modest gain in the company's share price and an increase in implied volatility.
Options trading for Academy Sports & Outdoors (NASDAQ: ASO) surged to its highest level in seven months on Monday, fueled by a concentrated burst of activity in bullish call options, according to exchange data.
The heightened volume suggests traders are positioning for a potential rise in the retailer's stock price in the near term.
Unpacking the Volume
By 11:40 a.m. New York time, total options volume for Academy Sports reached 5,350 contracts, a significant increase over typical activity. The trading was heavily skewed toward bullish sentiment:
- Call Volume: 4,742 contracts, the highest level recorded since December 17, 2025.
- Put Volume: 608 contracts.
AdA single contract dominated the day's trading: the July 17, 2026 $50 call, which accounted for 4,006 of the total contracts traded. This option gives the holder the right, but not the obligation, to buy shares at $50 before the mid-July expiration. Open interest for this specific option stood at 4,060 contracts as of July 10.
Market Reaction and Volatility
The spike in options activity occurred as Academy Sports shares gained 0.99% to trade at $46.77. The concentration in out-of-the-money calls, like the $50 strike, indicates that traders are speculating on a share price appreciation of at least 7% before the contracts expire.
Market indicators also pointed to expectations of increased price swings. The stock's three-month implied volatility rose 1.09 percentage points to 46.47%. Meanwhile, the three-month 90/110 skew, a measure of demand for puts versus calls, declined slightly, suggesting a relative easing in demand for downside protection.