Noteworthy Friday Option Activity: CTLP, SOUN, TEM

SoundHound AI (SOUN) and Tempus AI (TEM) experienced unusually high options trading volume today, with SOUN's volume at 171.8% and TEM's at 165% of their respective average daily share trading volumes. This surge was notably concentrated in long-dated call options, specifically the August 2025 $14 strike for SOUN and the August 2025 $62 strike for TEM. Such significant activity in specific call options suggests heightened speculative interest and a bullish outlook among options traders for these AI-focused companies.

Analysis

SoundHound AI (SOUN) and Tempus AI (TEM) have both registered exceptional options market activity, indicating a significant increase in speculative interest. SOUN's options volume reached 621,536 contracts, representing 171.8% of its average daily share volume, while TEM's volume hit 136,045 contracts, or 165% of its average. This activity was not diffuse; it showed notable concentration in specific long-dated call options. For SOUN, the August 2025 $14 strike call was particularly active, and for TEM, the August 2025 $62 strike call saw similarly high volume. The selection of these far-dated expirations suggests that options traders are positioning for substantial, long-term appreciation in the share prices of both artificial intelligence companies, betting on significant upward movement well above the specified strike prices over the next year.

Key Decisions for Investors

• Investors should monitor the underlying share price and volume for both SOUN and TEM, as the surge in call option activity could signal increased volatility or precede a potential upward price movement.
• The concentration in specific long-dated strikes ($14 for SOUN, $62 for TEM) establishes these levels as key psychological points to watch, which could influence future price action and technical analysis as the expiration dates approach.
• Given that this activity is speculative in nature, investors should assess the implied volatility of these options contracts, as elevated premiums may represent a significant cost and risk for those considering similar positions.