Traders piled into bearish options on CoreWeave as the AI data-centre trade sold off and bond yields on the Nvidia-backed firm jumped. Shares in CoreWeave, Nebius Group and Iren all fell sharply.
01Summary
- 01CoreWeave shares fell 15% on Wednesday after its bond yield touched 15%.
- 02Nebius Group and Iren also dropped as much as 10% as neocloud stocks came under pressure.
- 03Options volume in CoreWeave rose to more than seven times its 30-day average, while Nebius traded nearly four times normal volume and Iren about twice usual levels.
- 04Traders bought just under 200,000 CoreWeave puts versus 106,000 calls, including 26,000 37.5-strike puts expiring on 18 December.
- 05The 37.5-strike puts sold for 74 cents each, or about $1.9 million, and would only pay off if CoreWeave fell another 42% over two months.
02Why it matters
The moves show growing stress in a popular corner of the artificial intelligence trade, with investors now paying up for protection against further losses. That can affect other highly correlated tech and AI-linked stocks as well as broader market sentiment.
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