GlobalFoundries Options Trading Skews Heavily Bullish with 9-to-1 Call-Put Ratio

Options market activity for GlobalFoundries Inc. (GFS) revealed a strong bullish sentiment among traders, with the volume of call contracts purchased far exceeding that of puts. This surge in optimistic positioning accompanied a significant intraday rally in the semiconductor company's shares.

A Closer Look at the Trading Activity

Market data indicated that 12,434 call options were traded against just 1,358 put options, resulting in a low put-call ratio of approximately 0.11. The heightened activity occurred as GFS shares traded at $45.59, a gain of 5.95% as of 11:15 AM EDT, according to Investing.com.

Several specific contracts drew notable volume, highlighting a mix of short-term speculation and longer-term conviction:

• Short-Term Bet: The most aggressive positions were in the September 18, 2026 $50 calls, which saw 3,066 contracts traded ahead of their expiration the next day. Volume exceeded existing open interest, signaling new bets on a sharp, imminent price move.
• Longer-Term View: Significant volume was also seen in out-of-the-money $55 strike calls for both October 16, 2026 (3,106 contracts) and January 15, 2027 (3,017 contracts).
• Downside Hedge: A block of 950 contracts for the October 16, 2026 $45 put suggested some concurrent demand for downside protection near the stock's current price.

Volatility Indicators Signal Upside

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The options market is also pricing in an increased probability of future price swings. Three-month implied volatility reportedly rose by 1.45 percentage points to 58.02%. A more telling metric was the 90/110 skew, which fell to -0.85 percentage points.

A negative skew of this nature indicates that out-of-the-money calls are priced at a premium to equivalent out-of-the-money puts. This reverses the typical market structure, where puts often carry a "fear premium," and is considered a structurally bullish signal from options traders.

Context and Analyst Commentary

The bullish positioning may be linked to recent analyst commentary. On September 16, Stifel reiterated a Buy rating and a $60 price target on GFS, citing strong performance in its pluggables business. The popular $55 strike calls align closely with this target zone.

However, a more cautious view exists. In August, UBS trimmed its price target on the stock to $55, citing a management forecast for a low-double-digit decline in its mobile business in the fourth quarter. This remains a potential headwind for the company, where handset exposure is significant.