ARM Stock: Unusual Call Activity Targets $120 Strike as Shares Trade Near Mid-Range
By TrendSpider Editor
A notable options contract surfaced in Arm Holdings on Tuesday, with a single call at the $120 strike drawing $1,320,135 in premium and a 501-contract block against open interest of just 10%. ARM shares are currently trading at $138.18, up 0.94% on the session, and sit in the middle of their 52-week
ARM Stock: Unusual Call Activity Targets $120 Strike as Shares Trade Near Mid-Range
A notable options contract surfaced in Arm Holdings on Tuesday, with a single call at the $120 strike drawing $1,320,135 in premium and a 501-contract block against open interest of just 10%. ARM shares are currently trading at $138.18, up 0.94% on the session, and sit in the middle of their 52-week range of $80 to $183.16. The positioning of an in-the-money call at a strike well below the current price suggests a trader is either locking in leveraged upside exposure or hedging an existing short position in the name.
Key Drivers of the ARM Stock Move
- Main Catalyst: One unusual call contract was flagged today at the $120 strike expiring June 18, 2026, with a block size of 501 contracts and $1,320,135 in total premium. The contract is currently in the money, with the stock trading roughly $18 above the strike price.
- Bull Case: The sheer premium committed, over $1.3 million on a single contract block, signals conviction that ARM will remain above $120 through mid-June. With the stock already in the money at $138.18, the buyer has a meaningful cushion before this trade moves against them.
- Bear Case: The open interest reading of just 10% suggests this contract has limited existing positioning behind it, which could mean the trade is more speculative than institutional in nature. ARM also remains approximately 25% below its 52-week high of $183.16, reflecting the broader pressure the stock has faced over the past several months.
ARM has spent much of the past year consolidating after reaching highs above $183 in 2025, and the current price of $138.18 reflects a stock that has retraced significantly but found some footing above its 52-week low of $80. The June expiry on today's call gives the trader roughly 86 days to see appreciation materialize, covering a window that includes upcoming earnings cycles and potential catalysts around AI chip demand and semiconductor licensing trends. With zero put contracts flagged in today's unusual activity scan, the options flow is entirely directionally bullish, even if limited to a single trade. The lack of broader put activity alongside this call suggests the options market is not showing near-term hedging demand at elevated levels.
ARM Unusual Options Activity
- Type: Call | Strike: $120 | Expiry: June 18, 2026 | Volume: 501 contracts | Open Interest: 10%
This is the only unusual contract flagged in today's session, with no put activity recorded. The contract is in the money based on ARM's current price of $138.18, and the June expiry provides roughly 86 days of runway from today, March 24, 2026.
ARM Relative Performance
ARM is up 0.94% on the session, a modest gain that reflects steady but unspectacular price action. At $138.18, the stock sits roughly 57% above its 52-week low of $80 but remains approximately 25% below its 52-week high of $183.16, placing it closer to the upper half of its annual range without showing the kind of momentum that characterized its peak. Today's call activity implies at least one market participant expects that relative stability to hold or improve through mid-June.