Unusual Options Activity in Oddity Tech Signals Defensive Stance Ahead of Earnings

A single, large options trade in Oddity Tech Ltd. (NASDAQ: ODD) has skewed market data to appear overwhelmingly bearish, signaling significant defensive positioning by at least one investor ahead of the company's upcoming earnings release.

A Closer Look at the Options Flow

On September 3, options volume in Oddity was almost entirely concentrated in a single transaction. According to market data, 24,001 put contracts for the October 16, 2026, expiration were traded at a strike price of $7.50. This represented nearly all of the day's total options volume, which saw 24,012 puts trade against just 4 calls.

With Oddity's stock trading around $14.54 at the time, the $7.50 strike price is considered deep out-of-the-money, sitting approximately 48.4% below the current share price. The volume of this single trade was also nearly 2.8 times the existing open interest for that option, indicating new activity.

More Than a Simple Bearish Bet

While the headline put-to-call ratio is extreme, the nature of the trade points more toward hedging or a complex strategy rather than a straightforward bet that the stock will collapse. A trade this far from the current price could represent several possibilities:

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• A protective put purchased by a large shareholder to insure against a sharp decline.
• One leg of a more complex, multi-part institutional trade.
• A hedge against another position in the company's stock or options.

Adding to the complexity, data on volatility skew — which measures the relative cost of puts versus calls — showed that downside protection became comparatively less expensive. This conflicts with the idea of widespread panic and suggests this single large trade, rather than broad market sentiment, was the primary driver of the unusual activity. The data also showed a spike in three-month implied volatility to 105.32%, signaling expectations for a significant price swing.

Context: A History of Volatility

This cautious positioning is understandable given Oddity Tech's recent history. The company is scheduled to report earnings before the market opens on September 9, 2026, with consensus estimates calling for $0.19 in earnings per share (EPS) on $176.48 million in revenue.

However, the company's previous earnings release was a significant disappointment. Oddity reported a loss of $0.17 per share, missing the expected $0.02 EPS, and the stock fell 26.68% in response. This history of post-earnings volatility likely explains why investors are now taking steps to protect against potential downside risk.