Western Digital closed at $352.21, up 6.09%.

A $2.42 million put purchase dominated the options tape, with 1,040 contracts bought on the November 20, 2026 $340.00 put — an out-of-the-money strike that signals bearish institutional positioning despite the sharp rally. The block order appeared as a single-leg downside bet or hedge, with no offsetting bullish flow, highlighting caution beneath the surface of Western Digital’s strong session.

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Options Indicators

Western Digital’s implied volatility is 71.41%, while its IV percentile stands at 21.91%, indicating that although absolute IV is relatively high, it remains low versus its own recent historical range. In other words, volatility is on the lower side for this name and current options appear cheaply priced rather than expensive. With an IV/HV ratio of 1.13, the options market is pricing implied volatility only modestly above realized volatility, suggesting expectations are not excessively stretched.

The Call/Put volume ratio is 1.82.

Large Trades

A put buy worth $2.42 million was the standout large trade, with 1,040 contracts purchased on the November 20, 2026 $340.00 put. With WDC referenced at $352.21, this strike was out of the money at the time of the trade, indicating a bearish position that would benefit from downside in the stock over a longer-dated horizon. As a single-leg put purchase, the trade reflects either a direct downside bet or a hedge against a meaningful decline, and its size suggests conviction in protecting against or positioning for weakness below the current share price.

Overall, the bulk-order flow points clearly to a bearish near-to-medium-term stance on WDC. The large-trade activity was entirely concentrated in put buying, with no offsetting bullish block flow appearing in the data, which suggests that institutional interest was focused on downside exposure rather than upside participation. Taken together, the figures indicate cautious to negative market sentiment, with traders positioning for potential weakness or seeking protection against a pullback in the stock.

Strategy Reference

For traders preferring a neutral-to-bullish stance, selling the November 20, 2026 $240.00 put could offer a low assignment probability given the current $352.21 price and a roughly 30% downside buffer; alternatively, a put credit spread such as selling the $340/$300 put spread would cap margin while still collecting premium against the bearish block flow.