Pure Storage, Inc. (NYSE: PSTG) has seen a significant surge in call options, with a 191% increase in volume recently, indicating heightened interest among institutional investors. This spike occurs amid a pullback in Pure Storage’s stock, which has declined approximately 11-12% over the last 30 days, trading in the high $60s to mid $70s range. Investors appear to view this sell-off as an opportunity, betting on the company’s vital role in the anticipated growth phase of the artificial intelligence (AI) sector.
In its third quarter of fiscal year 2026, Pure Storage reported revenue of $964.5 million, a 16% increase year-over-year, and a record non-GAAP operating margin of 20.3%. The company is transitioning to a Storage-as-a-Service (STaaS) model that promotes recurring revenue, a shift considered favorable by Wall Street. Additionally, management has initiated a $400 million share buyback program, demonstrating confidence in the company’s valuation.
As AI technologies demand more efficient data storage solutions, Pure Storage’s proprietary DirectFlash technology positions it advantageously in the market. With the critical metric of energy efficiency becoming increasingly important, the options market indicates a strong belief that Pure Storage will benefit from the industry’s shift away from traditional hard drives to more efficient flash storage systems.
