Bullish Options Strategies for Celestica (CLS) Amid Record Earnings and Volatility

Celestica (CLS) has emerged as a standout performer in 2025, with its stock price surging to an all-time high of $254.79 on September 22, 2025, marking a 422% increase over the past year, according to MacroTrends' 27-year history. This meteoric rise, driven by robust earnings, strategic share repurchases, and a favorable shift in market sentiment toward AI infrastructure, has created compelling opportunities for bullish options strategies. Below, we dissect the fundamentals, options market dynamics, and actionable strategies for near-term capital appreciation.

Fundamental Catalysts: Earnings Surprises and Guidance Upgrades

Celestica's Q2 2025 results underscored its operational strength, with revenue reaching $2.89 billion-a 21% year-over-year increase-and adjusted earnings per share (EPS) of $1.39, surpassing analyst expectations of $1.23, per MarketBeat's earnings page. The company raised its full-year revenue guidance to $11.55 billion from $10.85 billion and lifted adjusted EPS projections to $5.50, reflecting confidence in sustained demand for its Connectivity & Cloud Solutions (CCS) segment, according to a GuruFocus release. Notably, the CCS segment's Hardware Platform Solutions revenue surged 99% year-over-year to $1 billion, driven by AI infrastructure demand, as reported in a Stocktitan article.

This momentum builds on Q1 2025 performance, where revenue grew 20% to $2.65 billion, and adjusted EPS jumped 45% to $1.20, per Yahoo Finance's options chain. Analysts have since upgraded price targets, with some projecting further upside as Celestica capitalizes on its strategic investments in cloud capabilities and supply chain efficiency, as highlighted in a Benzinga piece.

Options Market Signals: Bullish Positioning Amid Volatility

The options market for CLS reflects a mix of optimism and caution. As of September 2025, unusual options activity highlighted significant bullish trades, including $1.53 million in call options and $363,847 in put options, suggesting a projected price range of $90 to $310. Key call options with lower strike prices, such as the $110 call (implied volatility of 848.05%) and the $220 call (last price of $16.50), indicate strong expectations for upward movement. Conversely, put options like the $240 strike (last price of $1.60) show limited bearish sentiment, reinforcing the case for a bullish bias.

High implied volatility (IV) across call options-particularly for out-of-the-money strikes-presents both opportunities and risks. While elevated IV inflates premiums, it also amplifies potential gains if the stock continues its upward trajectory. For instance, the $220 call option, with a bid of $18.50 and ask of $20.40, offers leverage on a stock currently trading near $255.

Bullish Options Strategies: Leveraging Momentum

Given CLS's strong fundamentals and options market dynamics, two strategies stand out for near-term capital appreciation:

1. Long Call Options for Leveraged Exposure
2. Rationale: Buying call options with strike prices below the current stock price (e.g., $220 or $210) allows investors to capitalize on continued upside while mitigating downside risk. The $220 call, for example, offers a 15% leverage ratio (strike price vs. stock price) and benefits from high IV.

3. Risk Consideration: If CLS consolidates or declines, the premium paid for the call will be lost. However, the stock's 52-week high of $258.16 and strong earnings trajectory suggest limited near-term bearish risk.

4. Bull Call Spread for Defined Risk

5. Rationale: A vertical bull call spread (e.g., buying the $220 call and selling the $240 call) limits cost while capping potential gains. This strategy is ideal for investors who expect moderate further gains but want to hedge against volatility. The $240 call's low premium ($1.60) reduces the net debit, enhancing risk-adjusted returns.
6. Risk Consideration: The strategy's breakeven point ($220 + premium paid) must be surpassed for profitability. Given CLS's recent performance, this threshold appears achievable.

Conclusion: A Confluence of Fundamentals and Market Sentiment

Celestica's combination of record earnings, guidance upgrades, and AI-driven growth positions it as a compelling candidate for bullish options strategies. While the stock's volatility necessitates caution, the options market's heavy call buying and elevated IV provide a favorable backdrop for leveraged plays. Investors should prioritize strike prices aligned with the stock's near-term trajectory-such as the $220 call-and consider spreads to manage risk. As CLS navigates its September 2025 expiration cycle, the interplay of fundamentals and options positioning suggests a high probability of continued upside.