Waste Management Options Signal Bearish Stance as Key $210 Level Looms

Significant options activity in Waste Management Inc. (WM) on Thursday signaled a decidedly bearish sentiment among traders ahead of the September 18 options expiration. The flow was characterized by large, structured trades and the highest put volume in over a year, focusing intense pressure on the $210 support level.

Key Options Trades

Market data revealed two dominant strategies driving the unusual volume. One major trade was a risk reversal, or collar, involving 2,100 contracts each of the September $220 calls and $210 puts. This structure hedges against a drop below $210 while capping potential gains above $220, indicating a desire for downside protection.

A second notable trade was a calendar spread, where a trader rolled a large block of September $210 puts into October $210 puts. This move suggests the trader's bearish conviction extends beyond Friday's expiry, anticipating that downside risks will persist into the next month.

Market Implications

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Overall put volume reached 5,073 contracts, the highest level since July 2025, according to Investing.com. This pushed the put/call ratio to 1.60, a reading that reflects a strong preference for bearish or defensive positions. Despite the directional bias, implied volatility remained relatively stable, suggesting traders are positioning for a controlled decline rather than a sudden crash.

The activity establishes $210 as a critical battleground for the stock, which was trading around $212.62 during the session. This level is not only the strike price for the major options trades but also aligns with key technical support pivots. A close below this mark at expiration would make a significant number of put options profitable for their holders.

Technical and Fundamental Context

The bearish options flow is consistent with a weak technical picture for Waste Management, which has fallen approximately 14.3% from its 52-week high of $248.13. Multiple indicators, including the daily MACD and weekly RSI, signal negative momentum. However, some technicals like the daily RSI are approaching oversold territory, which could attract buyers. On the fundamental side, RBC Capital maintains a Sector Perform rating with a $244 price target, implying significant upside potential from current levels.