Notable Friday Option Activity: SPOT, OUST, WOOF

Ouster (OUST) and Petco (WOOF) are experiencing notable options trading activity today, with OUST options volume at 16,835 contracts, representing 58.5% of its average daily share volume, and WOOF options volume at 17,833 contracts, or 58.4% of its average daily share volume. This heightened interest is particularly concentrated in OUST's September 2025 $25 strike put options and WOOF's September 2025 $4 strike call options, indicating significant speculative or hedging positioning in these specific strikes.

Analysis

Ouster Inc. (OUST) and Petco Health & Wellness Co Inc. (WOOF) are both experiencing unusually high options market activity, indicating significant investor positioning. For Ouster, today's options volume of 16,835 contracts equates to approximately 58.5% of its average daily share volume, a substantial figure. The activity is heavily concentrated in the September 26, 2025, $25 strike put options, which have traded 5,132 contracts. This large, long-dated put volume may signal a significant bearish bet on the company's long-term prospects or a substantial hedging operation against a long stock position. Similarly, Petco's options volume of 17,833 contracts represents 58.4% of its average daily share volume. In this case, the focus is on a bullish instrument: the September 19, 2025, $4 strike call option, with 2,901 contracts traded. This suggests a speculative play on the stock's potential for a significant price increase over the long term. In both cases, the long expiration dates imply that these are not short-term speculative flurries but rather positions reflecting a more strategic, long-term thesis.

Key Decisions for Investors

• Given the significant options volume relative to daily share turnover, investors should consider this a signal of potential future volatility and heightened institutional interest in both OUST and WOOF.
• For Ouster (OUST), the concentrated volume in long-dated puts at the $25 strike warrants a cautious stance, and long holders might evaluate downside protection strategies or monitor for negative catalysts.
• For Petco (WOOF), the notable activity in long-dated $4 calls suggests bullish conviction, prompting investors to investigate potential fundamental improvements or catalysts that could drive the stock's price above this strike.