Iris Energy Limited closed at $40.20, gaining 19.57%. The options session was defined by large, directional trades, most notably a multi-million dollar bearish call spread that overshadowed a smaller bullish put sale, signaling a predominantly negative sentiment from sophisticated traders.

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Options Indicators

IREN’s implied volatility is 143.32%, and with an IV percentile of 98.01%, current option volatility sits at an extremely elevated level relative to its own historical range. In other words, options are priced expensively, and the IV/HV ratio of 1.64 further suggests implied volatility is running well above realized volatility, indicating the market is embedding a substantial premium for expected future price swings. The Call/Put volume ratio is 1.38.

Large Trades

A bearish call spread worth $5.12 million was the standout large trade of the session. This 2027-01-15 Bear Call Spread was built by selling 3,100 contracts of the $40.00 call, which is slightly in the money versus the $40.20 reference stock price, while buying 3,100 contracts of the $105.00 call, which is far out of the money. The structure was established for a net credit, indicating a premium-collection strategy with a bearish to capped-neutral outlook. Strategically, this trade suggests the seller expects IREN to remain below the short $40.00 strike or at least not rally meaningfully beyond it over time, while the long $105.00 call serves as upside protection and defines the maximum risk.

A short put sale worth $0.28 million was the other displayed large trade, consisting of 1,705 contracts sold on the 2026-07-31 $34.00 put. With the stock at $40.20, the strike sits out of the money, making this a moderately bullish income-style position. By selling the put, the trader is expressing a view that IREN will stay above $34.00 into expiration, allowing the option to decay in value, while also signaling willingness to take on downside assignment risk at an effective lower entry level if the shares weaken.

Overall, large-trade sentiment in IREN was clearly bearish. Total bearish flow reached $7.18 million versus just $0.28 million of bullish flow, leaving a net bearish difference of $6.89 million. The directional judgment is therefore decisively negative, as the tape was dominated by call overwriting and bearish option structures, led by the very large bear call spread, while the lone bullish trade was relatively small and defensive in nature. This mix points to a market tone that favors limited upside, continued pressure, or at minimum a view that any rally is likely to be capped.

Strategy Reference

For traders seeking to collect premium with a bearish bias but wishing to define risk, a bear call spread like the one executed, using a short strike at or near resistance and a long call further out of the money, can be an alternative to selling a naked call, which requires more margin.