Ambarella options flow shows mixed signals with elevated volatility

Investing.com reports mixed signals from Ambarella Inc. (AMBA) options activity, with elevated volatility at 62.25%. Call volume slightly outpaces put volume, with traders showing interest in a range of outcomes. The $65 call traded 2,135 contracts, while the $67 call saw 1,626 contracts, both above existing open interest, hinting at potential upside positioning.

However, the substantial volumes suggest new positioning or rolls rather than a decisive bullish move. Simultaneously, $55 and $60 puts traded 810 and 697 contracts, likely representing adjustments, profit-taking, or hedging as open interest remains high. Volatility dropped 6.18 percentage points to 62.25%, indicating waning fear or less demand for immediate protection.

The 90/110 skew fell to -1.69%, suggesting call demand has overtaken put demand. Overall, the market appears cautiously optimistic, with traders positioning for a significant move but not confirming an imminent rally.