Viavi Solutions Options See Surge in Bullish Bets on Breakout Above $40

Options traders are making a significant bullish bet on Viavi Solutions Inc. (VIAV), with a surge in call buying pointing to expectations that the stock will soon break above the $40 level following a key defense-related certification.

The activity comes as Viavi's shares climbed 6.51% to $39.66 in morning trading on September 25, according to Investing.com.

A Spike in Bullish Activity

The derivatives market showed a clear directional lean, with call volume outpacing put volume by a ratio of 7.5-to-1. The most active contract was the October 16 $40 call, where 4,920 contracts were traded against a prior open interest of just 2,177. This high volume relative to existing positions strongly indicates that traders were opening new bullish bets, not closing old ones.

Further technical indicators support this view. A sharp drop in the options skew to -6.04ppt means that demand has made upside calls more expensive than comparable puts—a rare and structurally bullish signal. At the same time, rising implied volatility suggests the market is bracing for continued price swings.

Defense Certification Fuels Optimism

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The catalyst behind the surge appears to be a fundamental development. Viavi announced that its Aerospace & Defense division has achieved the Cybersecurity Maturity Model Certification (CMMC) Level 2. This certification is a mandatory compliance standard for companies working with the U.S. Department of Defense, potentially expanding Viavi's opportunities in the sector.

This news adds to a strong financial backdrop for the company, which recently reported a fourth-quarter earnings beat, issued upbeat guidance for the next quarter, and pulled forward its target for achieving $500 million in quarterly revenue to calendar year 2027.

Context for Investors

While the options flow indicates strong near-term conviction, it is worth noting that two company directors sold significant amounts of stock in August 2026. According to the source, the sales totaled over $3.7 million at prices between $42 and $46 per share, levels above the stock's current price. The stock also remains about 34% below its 52-week high of $60.43.