Arm Holdings Attracts Bearish Bets From Options Traders Following IPO

Arm Holdings plc ARM shares closed lower on Monday amid post-IPO volatility.

On CNBC’s “Options Action,” Mike Khouw of Optimize Advisors said Arm Holdings was the 45th busiest single stock option on Monday, with puts outpacing calls by 2 to 1.

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There were buyers of more than 11,000 of the October 50-puts at an average price of $1.33 per contract, Khouw mentioned.

Trader sees Arm’s stock moving lower over the next month.

Arm Holdings issued its initial public offering valued at $54.5 billion, making it 2023’s largest IPO.

Bernstein initiated coverage on ARM Holdings with an Underperform rating and announced a price target of $46.

Price Action: Arm shares fell 4.5% to close at $58.00 on Monday, and lost another 1.9% in today’s pre-market trading session.

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