Fastly Options Traders Load Up on Calls With 7.3-to-1 Ratio Before Investor Day

Options trading in Fastly Inc (FSLY) is flashing a strikingly directional signal: a call-to-put ratio of 7.3 to 1, with 18,660 calls versus 2,543 puts among 21,203 total contracts. Much of the activity is clustered in ultra-short-dated expiries just two days out. When traders pile into near-expiry, out-of-the-money calls with negligible open interest, they are making a high-conviction, time-sensitive bet rather than hedging.

The Catalyst Stack

This flow is not happening in isolation. Three events are converging:

At the Citi 2026 Global TMT Conference on September 9, management presented at 8:10 AM EDT, helping drive the stock up 4.23% intraday to $22.40 by 2:12 PM EDT.

Fastly reported record second-quarter 2026 results on August 5: revenue reached $183.3 million, up 23% year over year, with a record gross margin of 63.3%. Net revenue retention hit 117%, its highest level in more than three years, while earnings per share of $0.15 surpassed the $0.07 estimate.

The company's Investor Day is set for September 22 at the Nasdaq MarketSite, providing a clearly visible catalyst on the horizon.

Dissecting the Strike Clusters

Screener values are snapshots and may lag live prices.

The standout detail is that the September 11 calls at $23.50 and $25.50 had open interest of just 68 and 24 contracts, respectively, indicating that today's volume is almost entirely new money. With expiration just 48 hours away, these are not portfolio hedges. They are binary bets on continued upside, likely aimed at extending today's conference-driven momentum or capturing a follow-through headline.

The Volatility Picture

Three-month implied volatility stands at 89.72%, down 1.96 percentage points, but it remains elevated for a mid-cap technology name. Even after the slight volatility crush, options premiums are expensive.

The 90/110 skew has risen by 4.02 percentage points to 2.89 percentage points, a contrarian signal. Under normal conditions, puts trade at a premium to calls due to downside fear. A positive skew here means the market is pricing upside calls richer than downside puts, confirming that the directional demand is far from casual.

Bull vs. Bear Framing

On the bull side, analyst targets from Evercore ISI ($32) and Raymond James ($29) sit well above current levels. The stock's one-year return of 192.81% and three-month gain of 20.24% suggest genuine momentum, and Investor Day on September 22 provides the next catalyst runway.

On the bear side, both the CEO and CFO have been selling shares through 10b5-1 plans; the CFO unloaded $1.15 million worth in August. InvestingPro flags the stock as trading above fair value. With implied volatility at 89.72%, options buyers are paying a steep premium, and theta decay on two-day expiries will be significant if the stock stalls.

The 48-Hour Outlook

The September 11 cluster is essentially a lottery ticket tied to a potential weekend gap: if additional conference headlines or analyst upgrades hit before Friday's close, those $23.50–$25.50 calls could multiply. Without a catalyst, they expire worthless. The September 18 cluster is the more measured play, giving the Investor Day runway time to breathe.

This article was generated with the support of AI and reviewed by an editor. For more information, see our Terms and Conditions.