VIAV options trading volume surges ahead of earnings

What happened: Viavi Solutions (VIAV) saw a surge in options trading volume, with 43,300 contracts traded on Thursday, representing 75.5% of its average daily volume. This activity preceded VIAV's earnings release, where the company not only beat but significantly exceeded estimates for its third quarter and provided robust guidance. Rosenblatt analyst Mike Genovese raised VIAV's price target to $70 from $42, reflecting a bullish sentiment.

Market impact: The increased options activity and strong earnings results drove up VIAV's stock price, benefiting investors who had bought call options. The positive performance of VIAV, which operates in the thriving industries of 5G and cybersecurity, also lifted sentiment in these sectors.

What to watch next: VIAV's next earnings release, scheduled for August 2026, will be crucial to monitor. Additionally, any updates on the company's progress in the 5G and cybersecurity markets, as well as any changes in analyst price targets, will provide further insights into VIAV's trajectory.