CoreWeave Jumps 23%, Options Turn Bearish

On December 19, 2025, AI compute infrastructure stock $CoreWeave, Inc.(CRWV)$   extended the strong momentum from the prior session. As November CPI data continued to show cooling inflation, expectations for future rate cuts strengthened, lifting overall risk appetite and driving a broad rebound across technology and compute-related assets. At the same time, on December 18, the Trump administration announced the “Genesis Plan” aimed at accelerating U.S. domestic development of AI, computing power, and critical digital infrastructure—emerging as a key catalyst for the compute theme. Against this combination of macro and policy tailwinds, CRWV surged as much as 23% intraday, with shares briefly jumping to around $83.

However, just as positive catalysts were being rapidly priced in and market sentiment turned noticeably overheated, the options market delivered an early and clearly bearish signal, diverging from the strength seen in the spot price.

Large Put Buying on the Day of the Spike

Intraday data showed heavy buying of CRWV May 2026 $55 puts, executed at the ask, with approximately 7,040 contracts traded for a total premium of about $4.86 million. Implied volatility on the contract was close to 96%, and the trade characteristics point to active position initiation, rather than adjustments to existing exposure.

Structurally, the put still implies roughly 30% downside from the prevailing share price, with a delta of around -0.18. This positioning is not designed to capture an immediate sharp selloff, but rather to price in a pullback from elevated levels or an intermediate-term valuation correction. A deep out-of-the-money put expiring in May 2026 aligns with a “sell-the-rally” framework, signaling that capital is betting on a scenario in which the post-surge momentum proves difficult to sustain over the coming months.

Policy Boosts Expectations, but Execution Risks Remain

From a fundamental perspective, CRWV's rally is not without justification. On one hand, easing inflation has reinforced expectations for a more accommodative financial environment, providing valuation support for capital-intensive compute businesses. On the other, the Genesis Plan explicitly elevates AI, compute capacity, and data centers to the level of national strategic infrastructure, significantly lifting near-term expectations for the sector.

At the same time, investors are increasingly reassessing a key reality: policy narratives primarily shape long-term direction and capital allocation, not near-term cash flows or earnings. CoreWeave continues to face challenges including heavy capital expenditures, high customer concentration, and intensifying competition from large cloud providers and other compute platforms. After a rapid, front-loaded repricing driven by concentrated positive news, options traders' decision to initiate put positions reflects a measured correction to expectations that may have run ahead of fundamentals.

Summary

Overall, despite the powerful tailwinds from cooling inflation, improving risk appetite, and policy-driven enthusiasm surrounding the Genesis Plan, CRWV's sharp short-term rally has been met with a nearly $5 million active put purchase with less than six months to expiration, signaling a clear intermediate-term pullback risk.

For investors, this options activity should be viewed as a directional signal rather than a purely defensive hedge. Those who participated earlier in the rally may consider gradually reducing exposure or locking in gains, while investors not yet positioned may find that options markets do not support chasing prices at elevated sentiment levels. Instead, the signal favors waiting for a pullback or valuation reset before reassessing medium-term allocation opportunities.

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