Coupang Sees Significant Bullish Activity in Options Market, Implied Volatility Rises

Coupang (CPNG) sees strong bullish activity in the options market with 21,793 call options traded, four times the usual volume. Implied volatility rises to 26.20%, with the most active options being the September 25th calls at $30 and November 25th calls at $33. The company's financial health is underscored by robust revenue growth and improving profitability metrics, but warning signs include insider selling and a below-average return on invested capital.

Coupang (CPNG) has experienced significant bullish activity in its options market, with 21,793 call options traded, four times the usual volume. This surge in trading activity, reported by TheFly, is indicative of investor optimism and potential upside expectations for the company. The most active options are the September 25th calls at $30 and November 25th calls at $33, with a total volume of nearly 17,700 contracts [1].

Implied volatility for Coupang's options has risen to 26.20%, suggesting increased uncertainty and potential for price swings. This elevated volatility is driven by the company's upcoming earnings report, scheduled for November 4th. The Put/Call Ratio, currently at 0.06, further underscores the bullish sentiment, as it indicates a significant preference for call options over puts [1].

Coupang's financial performance has been robust, with revenue of $8.52 billion surpassing expectations in the second quarter. However, the company reported earnings per share (EPS) of $0.02, missing estimates by $0.05. Despite this, the company's net margin and return on equity improved, indicating a trend toward better profitability [2].

Institutional investors have shown confidence in Coupang's prospects, with several large investors increasing their stakes. Cresset Asset Management LLC, for instance, increased its holdings by 60.5%, acquiring an additional 9,589 shares. Other investors, such as Thoroughbred Financial Services LLC and California State Teachers Retirement System, also boosted their positions [2].

However, there are warning signs for Coupang investors. Insider selling has been notable, with Vice President Pranam Kolari selling 11,653 shares and Chief Financial Officer Gaurav Anand selling 75,350 shares in recent transactions. These sales, totaling 10,262,000 shares over the last ninety days, represent a 6.84% and 3.60% decrease in their ownership, respectively [2].

Analyst ratings for Coupang have been mixed, with some upgrading their ratings to "overweight" and "buy" while others have downgraded to "hold." The consensus rating is "Moderate Buy" with a price target of $31.13, suggesting moderate investor sentiment [2].

Coupang's stock has traded down $0.10 during midday trading on Wednesday, reaching $28.32. The company's fifty-two week low is $19.02, and its fifty-two week high is $31.65. The stock has a market capitalization of $51.63 billion, a P/E ratio of 141.60, and a beta of 1.16 [2].

In conclusion, Coupang's strong bullish activity in the options market, coupled with robust revenue growth and improving profitability metrics, presents a compelling case for investors. However, insider selling and mixed analyst ratings should be closely monitored.

References:
[1] https://www.tipranks.com/news/the-fly/coupang-call-volume-above-normal-and-directionally-bullish-thefly
[2] https://www.marketbeat.com/instant-alerts/filing-cresset-asset-management-llc-purchases-9589-shares-of-coupang-inc-cpng-2025-08-24/