Coreweave Faces Heavy Call Selling After $2B Bond Offering

$CoreWeave, Inc.(CRWV)$   has shown an unusual — almost counter-intuitive — pattern in its options market over the past two days. On December 8, amid a sharp intraday drop of more than 9%, a massive $67 million block of Jan 2028 150C was sold in a single print. Today, another $9.45 million block of Jan 2028 130C was hit. In total, more than $76 million worth of long-dated, deep-out-of-the-money Calls were sold by institutions in just 48 hours, triggering heated debate: Is this bearish on CoreWeave — or a different kind of bullish?

Structurally, these trades are not short-term bets. They are three-year LEAPS Calls, far above spot, rich in premium and vega, and extremely lucrative to sell when volatility spikes. If the goal were to express bearish conviction, institutions could simply buy Puts — but they didn't. The deliberate, repeated selling of long-dated OTM Calls points to a more nuanced view: institutions are not rejecting CoreWeave's long-term growth, but rather managing future upside tail risk.

This positioning aligns almost perfectly with CoreWeave's latest corporate action. The company just announced a $2 billion 2031 convertible bond issuance to accelerate expansion of its AI data centers and Blackwell GPU infrastructure. While the financing strengthens long-term growth capacity, it also introduces potential equity dilution and forces a reassessment of the stock's valuation ceiling. In other words: the company is speeding up expansion, while institutions are quietly setting an upper boundary on future upside.

For professional investors managing large books, selling deep OTM LEAPS Calls into a volatility spike is a classic long-horizon risk-management tactic: 

• it retains the long-term bullish stance (unlike selling Puts, it carries no obligation to take delivery of shares), • it harvests high premium when IV explodes, 

• it reduces exposure to extreme upside tail events, 

• and it hedges dilution risk associated with new convertible issuance.

Thus, the message behind these huge trades is not "we're bearish," but rather: "We believe in CoreWeave's long-term story, but we doubt the stock can sustainably exceed $130 over the next three years."

For investors, the signal can be summarized in one sentence: The trend hasn't broken, but volatility is rising; growth remains intact, but the path is tightening. The AI infrastructure cycle is still strong, but with capex expanding and financing expectations rising, the market may begin to reprice the pace rather than the direction of CoreWeave's advance. Future price action may look more like volatile, step-by-step appreciation, rather than an unrestrained vertical melt-up.

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