Options Market Indicates Heavy Volatility For Affirm Holdings Amid High Volume Trading

Affirm Holdings, Inc. AFRM stock traded lower after Piper Sandler downgraded the stock from Neutral to Underweight.

On CNBC’s "Options Action,"  Mike Khouw of Optimize Advisors said Affirm traded at 1.5x its average daily options volume on Thursday. Options markets are expecting heavy volatility over the coming weeks and months.

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There were sellers of 4,842 of the August 15-calls at an average price of 89 cents per contract, Khouw mentioned.

Traders expect Affirm’s stock to not recover above the $15 level between now and August 18.

Piper Sandler analyst Kevin J. Barker downgraded the stock from Neutral to Underweight with a price target of $11.00. Barker expects persistently higher rates to pressure operating margins as AFRM needs to hold more loans on the balance sheet.

Price Action: Affirm shares dropped 10.6% to close at $13.79 on Thursday, and was up 0.8% in Friday's premarket trading session.

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Photo: Affirm