Noteworthy Tuesday Option Activity: NVRI, ELF, UPWK

e.l.f. Beauty Inc (ELF) and Upwork Inc (UPWK) both experienced significant options trading volumes today, with ELF's options volume reaching 51.4% and UPWK's reaching 50% of their respective average daily share volumes. Notably, ELF saw high activity in its $120 strike put option expiring January 2026, while UPWK's $17.50 strike put option expiring November 2025 also traded with elevated volume, potentially indicating increased bearish sentiment or hedging activity targeting these specific long-dated downside positions.

Analysis

e.l.f. Beauty Inc (ELF) and Upwork Inc (UPWK) both exhibited notable options trading activity today, with volumes representing approximately 51.4% and 50% of their respective average daily share trading volumes over the past month. ELF saw 7,132 contracts trade, equivalent to 713,200 underlying shares, while UPWK recorded 10,744 contracts, representing 1.1 million shares. This elevated options-to-stock volume ratio suggests significant speculative or hedging interest in these names.

A key observation is the concentrated activity in long-dated put options for both companies. For ELF, 2,006 contracts of the $120 strike put expiring January 16, 2026, traded, representing 200,600 underlying shares. Similarly, UPWK experienced high volume in its $17.50 strike put option expiring November 21, 2025, with 2,281 contracts or 228,100 shares traded.

The substantial volume in these out-of-the-money, long-dated put options indicates a potential increase in bearish positioning or sophisticated hedging strategies against existing long equity positions. Such activity can reflect institutional investors expressing downside protection or speculating on future price declines over an extended period. The neutral sentiment score for the article itself implies a purely descriptive reporting of these market flows.

Key Decisions for Investors

• Monitor the open interest and future trading activity in these specific long-dated put options for ELF ($120 strike, Jan 2026) and UPWK ($17.50 strike, Nov 2025) as a potential indicator of sustained bearish sentiment or hedging pressure.
• Evaluate the underlying fundamental drivers for both ELF and UPWK to ascertain if current valuations justify potential downside protection or speculative bearish bets implied by the options flow.
• Consider incorporating options-based strategies to hedge existing long positions in ELF or UPWK, aligning with the observed market activity, or to express a directional view if further analysis supports it.