Ainvest Option Flow Digest - 2025-12-18: $253.1M Institutional Wave Led By HISTORIC $119M AI Data Center LEAP

📅 December 18, 2025 | 🔥 HISTORIC FLOW: APLD's $119M 3-Year LEAP + AMZN's $91M Bull Call Spread + CLS $11.6M AI Infrastructure Play | ⚡ AI Data Centers, E-Commerce Recovery & Turnaround Stories Dominate

🎯 The $253.1M Institutional Wave: AI Infrastructure Takes Center Stage

🔥 UNPRECEDENTED SINGLE TRADE: We just tracked $253.1 MILLION in institutional options activity across 9 tickers - headlined by the LARGEST SINGLE TRADE OF THE YEAR on Applied Digital ($119M January 2028 LEAP!) plus Amazon's $91M bull call spread betting on e-commerce recovery. From AI data center infrastructure to retail turnarounds to defensive hedging, today's flow shows institutions positioning for 2026 with conviction.

Total Flow Tracked: $253,100,000 💰 Most Shocking: APLD $119M deep ITM LEAP (3+ year bet on AI data centers) Mega-Cap Play: AMZN $91M bull call spread (February 2026 recovery bet) AI Infrastructure: CLS $11.6M call ladder (June 2026 networking play) Defensive Hedge: META $10M put protection (hedging at record highs) Turnaround Stories: AAP $4.1M + INTC $4.9M (betting on corporate transformations)

📊 Today's Complete Flow Summary Table

🚀 THE COMPLETE WHALE LINEUP: All 9 Institutional Positions

1. 🏭 APLD - The $119M AI Data Center Moonshot (TRADE OF THE YEAR!)

DISCOVER WHY SOMEONE BET $119 MILLION ON AI INFRASTRUCTURE

• Flow: $119M deep ITM January 2028 calls ($8 strike, 65,000 contracts)
• What's Happening: $16B in contracted revenue from CoreWeave + hyperscaler partnerships transforming APLD from Bitcoin miner to AI data center powerhouse
• The Big Question: Can Applied Digital execute on 600MW of data center capacity as AI compute demand explodes?
• Catalyst: Polaris Forge data center completions through 2026-2027, CoreWeave revenue ramps

2. 📦 AMZN - The $91M E-Commerce Recovery Bet

DECODE THE MASSIVE BULL CALL SPREAD ON AMAZON

• Flow: $91M bull call spread ($210/$220 strikes, February 2026 expiration)
• What's Happening: Down 13% from November highs, institutions see value in $2.37T giant with $100B 2025 CapEx for AWS AI
• The Big Question: Will Q4 earnings on Feb 6 show AWS AI acceleration justifying premium valuation?
• Catalyst: Q4 2024 earnings February 6, 2025; Project Kuiper commercial launch

3. ⚡ CLS - The $11.6M AI Infrastructure Play

ANALYZE THE BULLISH BET ON AI NETWORKING LEADER

• Flow: $11.6M call ladder ($320 and $370 strikes, June 2026)
• What's Happening: 41% market share in high-bandwidth Ethernet switches, $250B+ hyperscaler CapEx in 2025
• The Big Question: Can CLS break above $300 resistance and rally 15-33% on 1.6T switch production ramps?
• Catalyst: Q4 earnings January 29, 2025; 1.6T Ethernet switch revenue begins late 2025

4. 🛡️ META - The $10M Profit Protection

UNDERSTAND WHY SMART MONEY HEDGES AT RECORD HIGHS

• Flow: $10M put protection (March 2026 expiration)
• What's Happening: META at all-time highs after explosive 2024 rally - institutions securing gains
• The Big Question: Is this the top for META or prudent risk management after 200%+ gains?
• Catalyst: Reels monetization updates, Reality Labs losses, regulatory scrutiny

5. 💳 HYG - The $5.6M High-Yield Bond Play

SEE THE BULL PUT SPREAD ON CREDIT MARKETS

• Flow: $5.6M bull put spread (January 2025 expiration)
• What's Happening: Fed rate path uncertainty creating premium opportunity in high-yield credit
• The Big Question: Will credit spreads stay tight through year-end or widen on recession fears?
• Catalyst: FOMC rate decisions, corporate credit health

6. 📊 SEI - The $5.3M Calendar Roll Strategy

ANALYZE THE PUT CALENDAR ROLL INTO EXPIRATION

• Flow: $5.3M put calendar roll (December/January expirations)
• What's Happening: Rolling protection through Triple Witch expiration into new year
• The Big Question: Is this defensive positioning or preparation for volatility into 2026?
• Catalyst: December 19 Triple Witch OPEX (tomorrow!), Q1 2026 outlook

7. 🔧 INTC - The $4.9M Turnaround Bet

DECODE THE BULL CALL SPREAD ON INTEL'S TRANSFORMATION

• Flow: $4.9M bull call spread (January 2025 expiration)
• What's Happening: Pat Gelsinger out, new CEO search + foundry strategy pivot creating opportunity
• The Big Question: Can Intel stabilize market share and execute foundry vision under new leadership?
• Catalyst: CEO appointment, Q4 earnings guidance, foundry customer wins

8. 🚗 AAP - The $4.1M Retail Turnaround

DISCOVER THE BET ON AUTO PARTS TRANSFORMATION

• Flow: $4.1M aggressive calls ($40 strike, January 2026)
• What's Happening: CEO Shane O'Kelly executing radical restructuring: 700+ store closures, $1.5B Worldpac sale
• The Big Question: Will operational improvements close the gap with AutoZone and O'Reilly?
• Catalyst: Q4 results, store closure execution, margin expansion updates

9. 🖥️ TTMI - The $1.6M PCB Tech Play

ANALYZE THE BET ON AI SERVER INFRASTRUCTURE

• Flow: $1.6M bullish calls (January 2026)
• What's Happening: TTM Technologies supplies PCBs for AI servers, riding hyperscaler demand wave
• The Big Question: Can TTMI capture disproportionate share of AI server buildout?
• Catalyst: AI server orders, data center buildout acceleration

⏰ Critical Expiries & Catalyst Calendar

🚨 TOMORROW: Triple Witch OPEX (December 19)

• SEI - $5.3M Calendar Roll - Position rolling through massive expiration
• HYG - $5.6M Bull Put Spread - Credit spread resolution

⚡ January 2025 Expirations (Monthly)

• INTC - January 17 - CEO search outcome, turnaround progress
• AAP - January 23 - Restructuring execution update

🧠 Q1 2026 Earnings Catalysts

• CLS - January 29 - Q4 FY2024 earnings, 1.6T program updates
• AMZN - February 6 - Q4 2024 earnings, AWS AI metrics

🚀 LEAP Expirations (2026-2028)

• TTMI - January 2026 - PCB demand validation
• CLS - June 2026 - AI infrastructure thesis resolution
• APLD - January 2028 - 3-year AI data center transformation

📊 Smart Money Themes: What Institutions Are Really Betting

⚡ AI Infrastructure Dominance (52% of Today's Flow: $132.2M)

The AI Compute Buildout Accelerates:

• → APLD: $119M 3-year LEAP - The biggest single bet of the year on AI data centers
• → CLS: $11.6M call ladder - Betting on 1.6T Ethernet switch production ramps
• → TTMI: $1.6M PCB play - AI server component demand

💰 Mega-Cap & Recovery Plays ($91M)

Value Emerging After Q4 Pullbacks:

• → AMZN: $91M bull call spread - E-commerce giant finding floor after 13% drop

🔄 Corporate Turnarounds ($9M)

Betting on Transformational Change:

• → INTC: $4.9M bull call spread - New CEO search creating opportunity
• → AAP: $4.1M aggressive calls - Radical restructuring bet

🛡️ Defensive & Income Plays ($20.9M)

Risk Management & Premium Harvesting:

• → META: $10M put protection - Securing gains at record highs
• → HYG: $5.6M bull put spread - Credit premium collection
• → SEI: $5.3M calendar roll - Position management into expiration

🎯 Your Action Plan: How to Trade Each Signal

🔥 YOLO Plays (1-2% Portfolio MAX)

⚠️ EXTREME RISK - Binary events with asymmetric payoff

AI Infrastructure Lottery:

• APLD deep OTM calls - Following the $119M whale on smaller scale (EXTREME volatility!)
• Risk: Total loss if AI infrastructure demand disappoints or execution stumbles
• Reward: 3-5x if AI data center boom continues through 2028

Turnaround Gambles:

• AAP January calls - 36 days to prove restructuring works
• Risk: Retail execution challenges, competition from AutoZone/O'Reilly
• Reward: 100%+ if turnaround thesis validates

⚖️ Swing Trades (3-5% Portfolio)

Multi-week opportunities with institutional backing

AI Infrastructure Basket:

• CLS January-June spreads - Hold through Q4 earnings Jan 29 for 1.6T switch updates
• AMZN February spreads - Ride into Feb 6 earnings for AWS AI metrics
• Timeline: 6-10 weeks through Q1 earnings

Turnaround Momentum:

• INTC January spreads - New CEO catalyst could spark rally
• Manage risk: Set stops at 30% of premium paid

💰 Premium Collection (Income Strategy)

Follow institutional sellers to harvest premium

High IV Plays:

• HYG credit spreads - Copy the bull put spread strategy for premium income
• SEI calendar spreads - Roll positions monthly for theta decay

Covered Call Income:

• Own AMZN shares, sell $230-235 covered calls into February earnings for 3-5% income
• Own META shares, sell calls against the $10M put hedge thesis

🛡️ Entry Level Investors (Learning Mode)

Start small, focus on education, build experience

Recommended Starting Points:

Paper trade first: Practice the AMZN bull call spread and HYG bull put spread on paper for 30 days

ETF exposure: Consider QQQ for broad tech exposure instead of single-stock risk

Quality shares: If bullish on AI infrastructure, consider CLS shares or AMZN shares instead of options

Study the setups: Watch how APLD LEAP performs over months to understand long-dated option dynamics

Critical Rules for Beginners:

• Never risk more than 1% of portfolio per trade
• Avoid YOLO plays entirely until you have 100+ trades of experience
• If you don't understand Greeks (delta, theta, vega, gamma), study before trading options
• The $119M APLD trade was made by professionals with sophisticated hedging - don't assume you can replicate it

⚠️ Risk Factors & What Could Go Wrong

😱 If You're Following the Bulls

AI Infrastructure (APLD, CLS, TTMI):

• AI monetization disappoints → hyperscaler CapEx cuts hit infrastructure names hard
• Execution delays on data center buildouts (APLD) or 1.6T switch programs (CLS)
• Competition intensifies - Vertiv, Arista, and others fighting for same customers
• Interest rates higher for longer → growth stocks multiple compression

E-Commerce Recovery (AMZN):

• AWS growth deceleration below expectations
• Consumer spending weakness heading into 2026
• Regulatory pressure on marketplace practices
• $100B CapEx doesn't translate to profit growth

Turnarounds (AAP, INTC):

• AAP: Store closures take longer than expected, competition intensifies
• INTC: New CEO struggles, foundry customers don't materialize
• Both stocks have underperformed for YEARS - turnarounds are hard

😰 If You're Following the Bears/Hedgers

META Put Hedge:

• Reality Labs losses decline faster than expected
• Reels monetization accelerates beyond consensus
• Instagram/WhatsApp advertising beats expectations
• AI advertising targeting improves conversion rates

HYG Credit Spread:

• Recession fears materialize → credit spreads widen sharply
• High-yield defaults spike → ETF faces redemptions
• Fed cuts rates aggressively → credit rally continues

🏷️ Expiration Tags

📅 Weekly (December 19 - TOMORROW!)

• SEI - Calendar roll expiration
• Triple Witch - Massive options/futures expiration affecting all positions

📆 Monthly (January 2025)

• HYG - Bull put spread resolution
• INTC - Turnaround thesis test
• AAP - Restructuring catalyst window

🗓️ Quarterly (February-March 2026)

• AMZN - February 2026 bull call spread into Q4 earnings
• META - March 2026 put protection expiration

🚀 LEAPs (2026-2028)

• CLS - June 2026 call ladder on 1.6T switch thesis
• TTMI - January 2026 PCB demand play
• APLD - January 2028 (3-year AI data center transformation)

🎯 The Bottom Line: AI Infrastructure Dominates $253.1M Flow Day

This is a historic day for options flow. The $119M APLD LEAP is the largest single trade we've tracked all year - someone just staked their career on AI data center infrastructure playing out over 3 years. Combined with Amazon's $91M recovery bet and Celestica's $11.6M AI networking play, institutions are LOUDLY signaling conviction in the AI infrastructure buildout.

The key questions today's flow raises:

Is APLD's $119M the start of institutional AI infrastructure FOMO?

Will Amazon's $91M spread capture the e-commerce recovery?

Can CLS break $300 on 1.6T switch momentum?

Is META's $10M hedge the top signal or prudent risk management?

Your move: Follow the themes that match your conviction level and risk tolerance. The APLD whale is making a 3-year bet - most retail traders shouldn't try to replicate that. Focus on the swing-trade setups (AMZN, CLS, INTC) with defined risk and clear catalyst timelines.

Remember: These are sophisticated institutional trades that may be part of larger hedged portfolios we can't see. Don't blindly follow the flow - use it as one input in your overall analysis. Position sizing and risk management are MORE important than trade direction.

🔗 Get Complete Analysis on Every Trade

⚡ AI Infrastructure Plays:

• APLD $119M January 2028 LEAP - TRADE OF THE YEAR
• CLS $11.6M June 2026 Call Ladder - AI Networking Leader
• TTMI $1.6M January 2026 Calls - PCB Demand Play

💰 Mega-Cap & Recovery:

• AMZN $91M Bull Call Spread - E-Commerce Recovery

🔄 Turnaround Stories:

• INTC $4.9M Bull Call Spread - CEO Transition Play
• AAP $4.1M January Calls - Retail Restructuring Bet

🛡️ Defensive & Income:

• META $10M Put Protection - Hedging Record Highs
• HYG $5.6M Bull Put Spread - Credit Premium
• SEI $5.3M Calendar Roll - Position Management

⚠️ Options involve substantial risk and are not suitable for all investors. The unusual activity tracked here represents sophisticated institutional strategies that may be part of larger hedged portfolios not visible to retail traders. APLD's $119M trade is particularly notable but represents an extremely long time horizon (3+ years) that most retail traders shouldn't attempt to replicate. Always practice proper risk management, understand that options can expire worthless resulting in 100% loss of premium, and never risk more than you can afford to lose. Entry level investors should paper trade extensively before committing real capital. Past institutional activity doesn't guarantee future performance.

📊 Total Flow Summary:

• Total Tracked: $253,100,000
• Largest Position: APLD $119M (47% of total flow)
• Sector Leaders: AI Infrastructure $132.2M (52%), Mega-Cap $91M (36%), Turnarounds $9M (4%), Defensive $20.9M (8%)
• Tickers Analyzed: 9 companies across AI infrastructure, e-commerce, semiconductors, retail, credit, and tech
• Expiry Range: December 2025 through January 2028 (LEAPs up to 3+ years)