Arm Holdings Sees Surge in Options Trading as Investors Bet on Artificial Intelligence Stocks
The demand for artificial intelligence stocks has led to a surge in options trading for Arm Holdings as investors seek to capitalize on the company’s recent gains. **Arm Holdings’ shares have nearly doubled in price in less than a week, soaring 80% since Wednesday after the company announced better-than-expected quarterly results driven by the demand for its technology in designing chips for artificial intelligence features.**
In response to the jump in the stock price, trading in the chip designer’s options has spiked, with volume reaching approximately 490,000 contracts per day over the last three sessions. **This surge in options activity has investors speculating that Arm Holdings could be the “next NVIDIA,” and the increase in bullish options bets may be contributing to the boost in the stock.**
NVIDIA, a chip heavyweight and a key player in the artificial intelligence market, has seen its stock climb about 220% over the past year, making it the top-performing stock during that period. Following this trend, **600,000 Arm contracts changed hands by 2:15 p.m. on Monday, and the day’s volume is projected to reach a record-breaking 816,000 contracts.**
With Arm shares trading at $137.72 on Monday, **call options on the shares rising above $185 by Friday were the most actively traded Arm contracts**. Call options provide investors with the right to buy shares at a predetermined price in the future, while puts offer the right to sell shares.
The surge in Arm’s share price has resulted in substantial gains for bullish options bets. For example, **a trader who purchased approximately 5,000 ARM January 2026 calls for around $12.2 million on February 7 witnessed the value of these contracts rise to about $42 million based on their last trading price on Monday**. Despite these significant gains, the trader appears to be holding on to these call options, indicating a bullish outlook for the stock.
On the other hand, **Arm puts were also seeing notable activity on Monday, suggesting that some investors may be looking to secure profits from the recent gains in the stock**. While Arm’s technology is not directly used in AI applications, companies like NVIDIA are opting for Arm’s central processing units to complement their AI-specific chips.
As the craze for artificial intelligence stocks continues to grow, options trading in Arm Holdings has surged, indicating that investors are betting on the company’s potential for further gains. **With strong performance in recent weeks, Arm Holdings is proving to be an attractive opportunity for those looking to capitalize on the artificial intelligence market**.
Analyst comment
Positive news: Arm Holdings Sees Surge in Options Trading as Investors Bet on Artificial Intelligence Stocks
As an analyst, I anticipate that the market for Arm Holdings will continue to experience growth and positive momentum due to the surge in options trading and the increasing demand for artificial intelligence stocks. The company’s recent gains and bullish options bets suggest that investors see significant potential for further gains in the stock.
