A 20 Million Call Bet on a Stock Down Two-Thirds

Two markets tell opposite stories about CoreWeave, and someone made a 19.6 million dollar bet on one. Its bonds yield around 15% with credit-default swaps pricing a 63% chance of default within five years, while the stock sits down two-thirds from its high. Right into that distress, a buyer bought 19.6 million in April 2027 calls, 16 times the prior open interest, needing a 50% rally to pay. The appeal: max loss is the premium, six months of runway, and the rebound could be violent. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 Bonds say 63% default, someone buys calls 00:18 CoreWeave hits a 52-week low 00:43 Dilution and a convertible offering 01:07 The 19.6 million call trade 01:31 Already underwater, needs 50% upside 02:01 The AI boom vs the financing 02:37 The debt tripled, sales doubled 02:53 Credit and equity miles apart 03:05 Nvidia takes the other side 03:51 Why someone picks the call over the stock #tastylive #signalvsnoise #coreweave #aiinfrastructure #creditrisk #default #callbuying #nvidia #optionstrading #stockmarket tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.