Chewy Surges 3.98% on Elevated Options Volatility as Trading Volume Ranks 299th

On August 15, 2025, Chewy (CHWY) rose 3.98% to $40.50, with a trading volume of $350 million, ranking 299th in market activity. The stock’s options activity showed heightened implied volatility across multiple strike prices, particularly in August 2025 expiration contracts. Calls with strike prices between $32.50 and $40.00 exhibited elevated open interest and trading volume, reflecting speculative positioning ahead of the expiration date. Puts with lower strike prices also saw increased activity, indicating mixed investor sentiment on near-term price direction.

Recent disclosures noted insider selling activity at Chewy, though specific details on the scale or timing of transactions were not provided. The stock’s performance was not directly tied to broader market trends, as the S&P 500 closed lower on the same day. Analysts noted that Chewy’s valuation remains elevated relative to peers, with a forward P/E ratio of 33.33, suggesting continued reliance on growth expectations rather than current earnings.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The 1-day return was 0.98%, with a total return of 31.52% over 365 days. This indicates the strategy captured some short-term momentum but also reflected market volatility and potential timing risks.