Affirm Options See Surge in Bullish Bets Ahead of Earnings

Options traders are positioning for a significant upside move in Affirm Holdings (AFRM) ahead of its scheduled earnings report, with bullish call options heavily outpacing bearish puts in recent trading. The heightened activity signals that investors are betting on a positive catalyst from the financial results.

Options Activity Signals Upside Bets

Total options volume for Affirm reached 23,596 contracts, with call options accounting for 14,522 of that total, compared to just 9,074 put options, according to data from Investing.com. This indicates a strong bullish sentiment among short-term traders.

The most significant activity was concentrated in short-dated call options expiring the following day, specifically targeting strike prices of $77, $80, and $85. The $77 strike call was particularly active, trading 2,078 contracts against a prior open interest of only 183, suggesting a large number of new positions were initiated in anticipation of a stock price increase.

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Volatility and Market Context

While some hedging activity was noted, including put spreads at the $72–$77 strikes, the dominant trend was clearly bullish. This sentiment is also reflected in volatility metrics. The 90/110 skew, which measures the relative demand for out-of-the-money calls versus puts, rose by 1.02 points to 1.42%, indicating traders are paying a premium for upside exposure.

This options activity precedes an earnings announcement where Wall Street consensus expects Affirm to report earnings per share of $0.35 on $1.11 billion in revenue. Analyst sentiment remains broadly positive, with 25 of 34 analysts covering the stock rating it a "buy" and a mean price target of $91.67. Given Affirm's high beta of 3.62, the stock has a history of significant price swings following its earnings releases.