Celsius Holdings options show heavy call buying despite 17% stock plunge

Celsius Holdings Inc options traders piled into calls—36,266 contracts versus 17,150 puts—even as the stock plunged nearly 17% to $24.12. That’s a bullish tilt in option positioning on a day when shares hit a fresh 52-week low, hinting that some see a rebound or at least a volatility play brewing.

Call buying into the decline

The options flow on Celsius Holdings Inc is notable: call volume outpaced puts by more than 2-to-1 despite a sharp price drop. This suggests traders are either betting on a bounce (a classic "catch the falling knife" play) or using calls to hedge short positions or lock in volatility. The most active strikes—$30, $24.50, $35, and $50 calls expiring in 2026—show a mix of near-the-money and out-of-the-money bets, with open interest especially heavy at $30 and $50. That’s long-dated positioning: someone’s willing to pay for time.

Fundamentals and sentiment: why the drop?

• Earnings miss: Q2 revenue ($817.9M) and EPS ($0.36) both missed estimates, sending shares down -17.3% to $24.12. The flagship brand declined 12% YoY, and margins compressed sharply.
• 52-week lows: Stock is now down -31.8% over the past year, trading near its 52-week low of $26.54.
• Analyst targets: The mean analyst target is $54.33 (implying 122% upside), but six firms have cut targets recently, reflecting caution. Fair value is pegged at $41.24—still well above today’s price.

Option positioning: reading the tea leaves

• Aggressive call buys: Large call volumes at $30, $35, and $50 strikes suggest traders expect a sizable recovery—or at least a volatility spike worth capturing.
• Open interest patterns: The $30 and $50 calls have thousands of contracts in open interest, indicating these are not just one-day punts, but possibly part of ongoing strategies (e.g., covered calls, buy-writes, or even hedges for short sellers).
• Put activity: Put volume is elevated but not dominant, so outright bearish speculation isn’t overwhelming the tape.

Take: volatility as the new normal

• Technical picture: The stock is oversold (RSI 21.6 on 1h, 48.6 daily), with every short-term moving average in strong-sell territory. This is classic "oversold, but no clear reversal yet" territory.
• Option flows: Heavy call buying signals either bottom-fishing or a volatility play, but the long-dated nature suggests some are betting on a turnaround over the next 1-2 years.
• Risk: Fundamentals are under pressure (earnings miss, margin squeeze), and analysts have lowered targets, but the options market is positioning for a possible snapback—or at least a large move.

Key insight: When call buyers step in after a crash, it’s often a sign that some see the selloff as overdone—or at least worth a speculative rebound bet. But with fundamentals under pressure, this is a high-risk, high-volatility setup.