Today, unusually heavy volume in out-of-the-money call options on ViaSat, Inc. (VSAT) stock is leading investors to speculate whether VSAT is set to spike higher. Investors may be betting on its new direct-to-cell phone deal with UAW satellite company Space 42 for $1 billion.
That deal came to light about two weeks ago on Sept. 13. Since then, though, the stock has been flat.
VSAT is up today in midday trading at $71.03. VSAT stock has been roughly flat for the last month and is down from a recent peak of $87.23 on Aug. 12
VSAT - last 3 months - Barchart - Sept. 30, 2026
The investors buying large amounts of call options are at a strike price of $135.00, expiring on Jan. 15, 2027, 107 days from now. This can be seen in the Barchart Unusual Stock Options Activity Report today.
Over 6,000 call options have traded at that strike price. That's over 17.7x the prior number of calls outstanding. It suggests heavy speculative buying, which initiated this trading.
VSAT calls expiring Jan. 15, 2027 - Barchart Unusual Stock Options Activity Report - Sept. 30, 2026
The premium paid by these call option buyers was $1.17. That implies they expect VSAT to spike by more than 91.7% to $136.17 by the end of the year or early January. That's because the expiry date is very soon, just 107 days from now.
This can only occur if there is a major change with VSAT, such as a takeover deal, a major infusion of cash, or a large increase in its expected cash flow.
Speculative Buying
Right now, this is a very speculative investment by the VSAT call buyers.
For example, analysts are forecasting negative earnings in the upcoming quarter's earnings report (i.e., $0.01 earnings per share, or EPS). There is also no guarantee that its new satellite, which has recently come online, will be able to generate substantial cash flow.
Moreover, the new deal with Space 42 of the UAE won't come online anytime soon to substantially affect ViaSat's cash flow and earnings for at least a year or two.
Nevertheless, analysts are now projecting 9 cents EPS for the year ending March 31, 2027, and 17 cents for the following year. That implies the stock is on a forward price/earnings (P/E) multiple of 789x for this year and 417x for the following year.
And at $135, the strike price, the multiple is a whopping 794x for 2027. Even if earnings were to quadruple to 68 cents somehow, the P/E ratio would still be almost 200x (198.5).
That shows that this call option buying in VSAT call options may be based on hopes of a takeover and its satellite bandwidth. That is highly speculative.
In short, investors should be careful in copying this trade. The risks of loss are very high.
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