Tripadvisor Sees Surge in Bearish Options Bets as Stock Nears 52-Week Low

Options trading in Tripadvisor Inc. (TRIP) showed a significant bearish tilt on Tuesday, with put volume vastly outpacing call volume as the stock hovered near its 52-week low. The activity suggests traders are increasingly positioning for further downside or hedging against additional losses in the online travel company.

Lopsided Options Volume

Market data revealed a stark imbalance in options activity, with traders buying and selling significantly more puts than calls.

• Total Volume: 16,244 put contracts were traded, compared to just 4,118 call contracts.
• Put-to-Call Ratio: The volume translates to a ratio of nearly four puts for every one call, a clear indicator of bearish sentiment.
• Key Contracts: Heavy volume was concentrated in the October and December expiration cycles. Specifically, 4,982 contracts were traded for both the October $10 puts and the December $10 puts. Another 4,982 contracts were traded for the deep out-of-the-money December $7 puts, suggesting some traders anticipate a substantial price decline.

The high volume in some contracts relative to their open interest indicates that many of these are likely new bearish positions being established.

Context: Stock Under Pressure

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The surge in put activity comes as Tripadvisor's stock struggles, trading at $9.56 and approaching its 52-week low of $9.01. The stock has underperformed significantly, falling 45.4% over the past year.

This price action follows a disappointing second-quarter earnings report, where the company missed analyst forecasts for both earnings per share and revenue. According to the source, 12 analysts have since revised their earnings estimates downward, and revenue is projected to shrink by 17.6% in 2026.

Volatility and Skew Ease

Despite the heavy bearish positioning, some indicators suggest that acute market panic may be subsiding. The stock's 3-month realized volatility fell by 1.55 points to 49.12%. Additionally, the options skew—which measures the premium for out-of-the-money puts over calls—declined, hinting that while demand for downside protection remains high, the urgency may be cooling.

This dynamic suggests the market is pricing in continued weakness for Tripadvisor, but the most aggressive phase of fear may have passed. Still, the overwhelming put volume signals that the path of least resistance is perceived to be lower for the stock.