Rubrik Options Volume Surges With Bearish Tilt Ahead of Earnings

Options market activity for Rubrik, Inc. (NYSE: RBRK) intensified ahead of its second-quarter earnings release, with total volume reaching 21,436 contracts. The heightened trading comes as the company's stock rallied 10.9% to $106.62, approaching its all-time high and setting a high bar for the financial results.

Activity Breakdown

Trading volume was significantly above average, with a near-even split between bearish and bullish bets. According to market data, puts slightly outnumbered calls, with 10,954 contracts traded compared to 10,482 call contracts.

Key observations from the trading activity include:

• Dominant Put Spreads: The largest trades involved put spreads for the September 18 expiration, particularly the $90/$100 spread, which saw 3,401 contracts change hands. This strategy suggests traders are hedging against or speculating on a moderate decline, rather than a catastrophic drop.
• Short-Term Bets: Significant volume was also seen in short-term options, including the August 28 $110 calls (1,401 contracts) and $95 puts (1,078 contracts), indicating positioning for a sharp, immediate move in either direction following the earnings announcement.

Volatility Signals Major Move

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The options market is pricing in a substantial stock move, as evidenced by a sharp increase in implied volatility (IV). The 3-month implied volatility for Rubrik rose by 1.7 percentage points to 71.91%, reflecting heightened uncertainty.

Furthermore, the skew, which measures the relative cost of bearish puts versus bullish calls, has widened. The 90/110 skew increased to 3.03 percentage points, signaling that demand for downside protection has grown, making put options comparatively more expensive. This suggests a greater degree of caution or hedging among market participants.

Context for Investors

The surge in options activity highlights the critical nature of the upcoming earnings report, for which analysts forecast a loss of $0.37 per share. After a nearly 50% rally, investors will be closely watching for strong revenue and annual recurring revenue (ARR) growth to justify the stock's current valuation.

The mixed positioning—combining downside protection via put spreads with speculative call buying—indicates that while some traders are hedging their positions, the market is broadly prepared for a significant price swing. The direction of that move will likely depend on whether the company's results and forward guidance can meet or exceed elevated market expectations.