Zymeworks Options See Heavy Bullish Activity as September $35 Calls Dominate

Options trading volume in Zymeworks Inc. (ZYME) surged on August 31, driven by overwhelmingly bullish sentiment. The heightened activity coincided with a 4.7% increase in the company's stock price to $29.60, nearing its 52-week high.

A Surge in Bullish Bets

Total options volume reached 3,720 contracts, with call options, which are bets on a stock price increase, accounting for 3,533 of that total. According to an Investing.com report, this represents the highest call volume since August 2025 and is more than 17 times the volume of bearish put options.

The majority of the trading activity was concentrated on a single contract: the September 18, 2026, $35 strike call, which saw 3,187 contracts change hands. This concentrated buying suggests a strong conviction among some traders that Zymeworks' stock will rise above $35 per share before the mid-September expiration.

Key Market Signals

Despite the aggressive call buying, 3-month implied volatility fell by 8.88 percentage points to 55.93%. A drop in volatility alongside a stock rally can indicate that the market is becoming more confident in the upward trend and expects less erratic price swings.

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At the same time, options skew—a measure of the relative demand for bullish calls versus bearish puts—rose significantly. This indicates that out-of-the-money calls have become much more expensive, a classic sign of high demand for upside exposure, sometimes referred to as "fear of missing out" among traders.

Fundamental Catalysts

The wave of optimism appears to be rooted in several recent positive developments for the company. These include:

• FDA Approval: Zymeworks recently received regulatory approval for zanidatamab for a specific type of gastroesophageal cancer.
• Milestone Payment: The company is set to receive a $250 million milestone payment from its partner, Jazz Pharmaceuticals.
• Analyst Upgrades: Several Wall Street firms, including H.C. Wainwright, Citi, and Stifel, have recently raised their price targets, with a consensus target of $41.58, implying significant upside from current levels.
• Strategic Acquisition: The company recently acquired Theravance Biopharma, a move expected to add commercial revenue streams.