Notable Tuesday Option Activity: SEI, NET, WGS

Cloudflare (NET) saw unusually heavy options activity today with 24,267 contracts traded (≈2.4 million underlying shares), equal to roughly 78.6% of its one‑month average daily share volume, led by 1,936 contracts in the $195 put expiring Nov. 21, 2025 (≈193,600 shares). GeneDx (WGS) also logged elevated flow—4,651 contracts (≈465,100 shares), about 74.8% of its average daily volume—concentrated in 2,500 contracts of the $180 call expiring Dec. 19, 2025 (≈250,000 shares). The concentration in single strikes and long‑dated expiries signals sizable directional or hedging bets that could affect liquidity and price dynamics in both names.

Analysis

Cloudflare Inc. (NET) experienced unusually heavy options activity with 24,267 contracts traded today, representing roughly 2.4 million underlying shares or about 78.6% of NET’s one‑month average daily volume of 3.1 million shares. The largest single strike was the $195 put expiring Nov. 21, 2025, with 1,936 contracts (~193,600 underlying shares) concentrated in that strike.

GeneDx Holdings (WGS) logged 4,651 option contracts (~465,100 underlying shares), equal to approximately 74.8% of its one‑month average daily volume of 622,045 shares, and showed concentration in the $180 call expiring Dec. 19, 2025 with 2,500 contracts (~250,000 shares). Both flows are long‑dated and concentrated at single strikes, consistent with sizable directional or hedging positioning rather than routine retail activity.

The article does not disclose whether the large trades were buys or sells, limiting direct inference on conviction, but the concentration and scale imply potential short‑term impacts on implied volatility, delta‑hedging order flow and liquidity in the underlying stocks. Given a neutral overall sentiment and a modest market impact score (0.3), investors should monitor price moves, changes in open interest and IV term structure to determine whether these flows represent new directional bets or protective hedges.

Key Decisions for Investors

• For NET, avoid assuming bearish intent solely from put volume; monitor price action, implied volatility and whether open interest increases for the $195 Nov. 21, 2025 put before adjusting net exposure
• For WGS, treat the concentrated $180 Dec. 19, 2025 call activity as a signal to verify bullish order flow (buy prints versus sells to open) and consider small tactical exposure or call purchases only after confirming trade direction and IV behavior
• Track intraday and multi‑day changes in open interest and IV term structure for both tickers to detect sustained positioning and potential short‑squeeze or volatility-driven moves
• Keep position sizes conservative and account for reduced liquidity and slippage risk given option flow equaled ~75–79% of each stock’s average daily volume