Noteworthy Friday Option Activity: MRK, CAPR, IE

Capricor Therapeutics (CAPR) and Ivanhoe Electric (IE) experienced unusually heavy options activity today: CAPR saw 11,278 contracts trade (≈1.1M underlying shares, about 71.7% of its one‑month average daily volume), concentrated in a $4 put expiring Dec. 19, 2025 (3,203 contracts, ≈320,300 shares); IE traded 14,229 contracts (≈1.4M shares, about 71.4% of its one‑month average), concentrated in a $12.50 put expiring Nov. 21, 2025 (6,697 contracts, ≈669,700 shares). The skew toward large put blocks suggests significant bearish positioning or hedging interest in both names and could lift implied volatility or exert downward pressure on the underlying equities if positions are adjusted or exercised.

Analysis

Capricor Therapeutics (CAPR) and Ivanhoe Electric (IE) exhibited unusually large options flow today: CAPR traded 11,278 contracts (~1.1 million underlying shares), equal to ~71.7% of its one‑month average daily volume of 1.6 million shares, with concentration in the $4 put expiring Dec. 19, 2025 (3,203 contracts ≈ 320,300 shares). IE traded 14,229 contracts (~1.4 million underlying shares), ~71.4% of its one‑month average daily volume of 2.0 million shares, concentrated in the $12.50 put expiring Nov. 21, 2025 (6,697 contracts ≈ 669,700 shares).

The heavy skew toward listed puts in both names signals substantial bearish positioning or hedging interest, a reading echoed by the per‑ticker sentiment scores (CAPR -0.4, IE -0.5) and the overall mildly negative sentiment (-0.25). Such concentrated put activity can raise implied volatility and create downward pressure on the underlying if large positions are adjusted, exercised, or if market makers hedge dynamically.

Because these option blocks represent roughly 70% of each stock’s recent average daily volume, the flows are large relative to liquidity and could amplify price moves in the near term; the reported market impact score (0.35) implies a modest but non‑negligible market effect. Investors should watch implied volatility, trade volume in the cash equities, and the specific expirations (Nov. 21, 2025 for IE and Dec. 19, 2025 for CAPR) for follow‑through or unwinding activity.

Key Decisions for Investors

• Monitor CAPR and IE spot prices and implied volatility closely ahead of the Nov. 21, 2025 and Dec. 19, 2025 expirations given the large put concentrations (≈669,700 and 320,300 underlying shares respectively),
• Consider trimming or hedging net long exposure to CAPR and IE into these expirations or using protective options (puts or collars) if you hold material equity positions,
• Avoid initiating large short‑volatility trades in these names until put concentration and implied volatility normalize, and
• Watch cash equity volume and post‑trade flow for signs of follow‑through selling since option volume equals roughly 71% of each stock's one‑month average daily share volume