CRWV — Aug 110/140 call credit spread

CoreWeave carries a $98.8B RPO into a Q2 print expected in mid-August, but Microsoft was 72% of Q1 revenue and HSBC opened coverage at Reduce with a $32 target on that concentration. Insiders have logged 1,812 open-market sales and zero buys over six months while a 27.5% lock-up tranche freed in May keeps Rule 144 supply on the tape. The chain prices a 31% move by August expiry, so the 110/140 call credit spread sells that elevated premium with a bearish tilt and a 118.93 breakeven.

Structure

  • short call 110 2026-08-21
  • long call 140 2026-08-21

Signals

  • Customer concentration: MSFT = 72% of Q1 revenue (web_search)
  • Sell-side: HSBC initiated Reduce, $32 PT (web_search)
  • Insider selling: 1,812 open-market sales, 0 buys (6mo) (web_search)
  • Lock-up supply: 27.5% tranche (~61M sh) freed May 18; Rule 144 resales ongoing (web_search)

What invalidates this thesis

A blowout Q2 print that diversifies revenue beyond Microsoft, plus an IV crush, pushes CRWV through the 110 short strike; the spread loses above the 118.93 breakeven.