Daily Seller Options Strategy | AI Cloud Computing Sector Surges Sharply; How to Collect Premiums Using Options Strategies Amid High IV?

I. Market Barometer

On May 6, 2026, the US Nasdaq Composite closed up 2.02% at 25,838.94 points, while the Dow Jones Industrial Average rose 1.24% to 49,910.59 points. Recently, prices in the AI computing power supply chain have skyrocketed, with the cloud computing sector leading gains.

The current market sentiment is leaning towards overheating, with significant short-term gains already realized. The risk-reward ratio for chasing higher prices is insufficient. Meanwhile, in a high implied volatility environment, the premium for selling options is notably enhanced, making it suitable to earn time value and reduce holding costs through selling options.

II. Focus on Hot Targets

$CoreWeave (CRWV.US)$: AI computing power contracts surge ahead of earnings report as institutions raise target prices

$CoreWeave (CRWV.US)$ The previous trading day closed up 7.89% at $137.98, with year-to-date cumulative gains of approximately 93%.

The company's AI cloud computing contracts continue to experience explosive growth.In April, the company announced three major agreements in succession: a new deal with Meta worth approximately $21 billion, a data center leasing partnership with Anthropic, and a $6 billion AI cloud agreement with Jane Street. As a result, the company’s contract backlog has accumulated to over $95 billion, with nearly all capacity for 2026 pre-secured.

Ahead of the earnings release, multiple institutions raised their target prices. Jefferies maintained its target price at $160 and kept its buy rating, while Bank of America Securities raised its target price to $140, also maintaining a buy rating. The market expects Q1 revenue to be approximately $2 billion, representing year-over-year growth of about 100%. Going forward, investors should closely monitor the progress of data center capacity coming online and improvements in profitability.

$IREN Ltd (IREN.US)$: Acquiring Mirantis to accelerate AI cloud computing transformation

$IREN Ltd (IREN.US)$ The previous trading day closed up 11.40% as the company accelerates its strategic shift from Bitcoin mining to AI cloud computing. Recently, IREN announced an all-stock transaction to acquire Mirantis, a cloud infrastructure software company, valued at approximately $625 million, aiming to strengthen its AI cloud computing capabilities.

According to analysts’ estimates, the transaction values Mirantis at approximately four to five times its revenue, marking a significant step for IREN to catch up with 'full-stack AI cloud' competitors such as NEBIUS Group and CoreWeave. This acquisition follows IREN's recent completion of approximately $3.6 billion in financing, primarily used to expand GPU and data center computing power, with total capital expenditures for the expansion expected to exceed $9 billion.

Analysts’ consensus target price stands at approximately $85.5, with a strong buy recommendation. Investors should closely watch the pace of GPU deployment, the fulfillment of AI cloud customer orders, and overall improvements in the company’s profitability.

III. Seller Options Strategy

1、Sell 1 contract $CoreWeave (CRWV.US)$20260515 115P, estimated required margin (for reference only): $11,500 ($115 x 100)

2、Sell 1 contract $IREN Ltd (IREN.US)$20260618 40P, estimated required margin (for reference only): $4,000 ($40 x 100)

Opportunity Screening Logic

Both strategies this time focus on high-heat targets in the AI cloud computing sector, selecting out-of-the-money contracts for the near month. On one hand, the fundamentals of the AI cloud computing sector are strong. After a short-term surge, the risk-reward ratio for chasing the underlying stock is insufficient. Selling cash-secured puts can reduce the cost of taking delivery while maintaining a positive outlook on the target. In a high implied volatility environment, premium returns are higher than usual, providing better odds of success.

IV. Risk Control Reminder

Although the seller strategy has a high probability of success, investors must still manage risks effectively:

– Position management is key:The biggest risk for option sellers lies in black swan events. It is recommended that margin exposure for a single underlying should not exceed 20% of total capital. Never sell options beyond your capacity for the sake of greedy premiums.

– Timely rolling of covered call options: When a covered call option becomes deeply in-the-money (stock price far exceeds the strike price), and if the underlying stock is still viewed favorably, decisively 'roll' the position — that is, close the current option by buying it back and simultaneously sell an option with a later expiration date and a higher strike price to avoid having the stock called away at a low price.

– Cash-secured put options warn of 'left-tail risk':For cash-secured puts, if the stock price collapses due to deteriorating fundamentals (rather than a normal pullback), do not hold on stubbornly. At this time, stop losses should be executed, or 'rolling down' can be employed to buy time and wait for volatility to normalize.

Make the most of the options seller zone to understand income strategies for selling options,Earn option premiums!

Options Risk Warning

An option is a contract that grants the holder the right, but not the obligation, to buy or sell an asset at a fixed price on a specific date or at any time before that date. The price of an option is influenced by various factors, including the current price of the underlying asset, the strike price, time to expiration, and implied volatility. Implied volatility reflects the market’s expectations for the level of volatility in the option over a future period. It is a data point derived inversely from the Black-Scholes option pricing model and is generally regarded as an indicator of market sentiment. When investors anticipate greater volatility, they may be more willing to pay a higher price for options to hedge risks, resulting in higher implied volatility. Traders and investors use implied volatility to assess the attractiveness of option prices, identify potential mispricings, and manage risk exposure.

Disclaimer

This content does not constitute any offer, solicitation, recommendation, opinion, or guarantee for any securities, financial products, or tools. The risk of loss in trading options can be substantial. In some cases, losses incurred may exceed the initial margin deposited. Even if you set contingency orders, such as 'stop-loss' or 'limit' orders, these may not necessarily prevent losses. Market conditions may make such orders unexecutable. You may be required to deposit additional margin within a short period. If you fail to provide the required amount within the specified time, your open positions may be liquidated. However, you will still be responsible for any shortfall in your account resulting from such liquidation. Therefore, before trading, you should study and understand options and carefully consider whether such trading suits you based on your financial situation and investment objectives. If you trade options, you should be familiar with the procedures for exercising options and the rights and obligations upon expiration. Options trading involves extremely high risks and is not suitable for all investors. Investors should read Characteristics and Risks of Standardized Options carefully before engaging in any options trading strategy.

Editor/Doris

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