Lyft Options Skew Bearish as Puts Outpace Calls Nearly 2-to-1

Options market activity for Lyft Inc. (LYFT) showed a significant bearish tilt during recent trading, with put options outpacing call options by a wide margin as the stock fell more than 7%. The sentiment was underscored by large, long-dated trades betting on a continued decline in the ride-hailing company's share price.

Bearish Bets Dominate

The most telling indicator was the put/call ratio, which stood at 1.82, according to market data. This means that for every call option traded, nearly two put options were changing hands. Total volume reached 43,290 contracts, with 27,946 puts and 15,344 calls.

Several large trades highlighted the negative sentiment:

• A new position in the March 19, 2027, $13 puts saw volume of 10,093 contracts, nearly double the existing open interest. This suggests fresh capital being deployed to bet on a decline of approximately 14% from the stock's intraday price of $15.07.
• Traders also added 5,874 contracts to an already large position in the January 15, 2027, $12 puts, which would represent a further 20% drop from current levels.

Market Context and Volatility

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The heavy put buying aligns with several fundamental headwinds. Scotiabank recently initiated coverage on Lyft with a "Sector Perform" rating, while giving its competitors Uber and DoorDash higher "Outperform" ratings. The company has also faced a series of stock sales from executives and board members under pre-arranged 10b5-1 plans and faces growing competitive pressure from autonomous vehicle services.

Volatility metrics confirm the market's apprehension. The 3-month implied volatility rose to 52.74%, and the skew, which measures the premium of out-of-the-money puts over calls, also increased. A rising skew indicates that traders are willing to pay more for downside protection than for upside speculation.

A Few Contrasting Signals

Not all activity was one-sided. Some shorter-term options flow suggested traders were positioning for a potential near-term rebound. A structure involving the purchase of $17.50 and $18.50 calls for September expiry, along with some activity in the $16 calls, points to speculation on a possible bounce. However, these smaller, near-term trades were overshadowed by the size and conviction of the longer-term bearish positions.