VRT — Nov 260/330 call spread

Vertiv fell 8.4% on the week while the business under it held: 2025 revenue was $10.23B at a 37% gross margin, and on Sep 3 it agreed to buy Utility Innovations for up to $2.6B to own the grid connection outside the building. The Oct 21 Q3 print lands inside November expiry, where the chain prices a 21% move with IV in the 30th percentile of its 52-week range, so the 260/330 call spread buys the rebound for $19.22 on a $70 width.

Structure

  • long call 260 2026-11-20
  • short call 330 2026-11-20

Signals

  • 2025 revenue / gross margin: $10.23B / 37.2% (DB)
  • Utility Innovations acquisition: Up to $2.6B (Motley Fool, Sep 3) (web_search)
  • Week return: -8.4% (52w position 50%) (DB)
  • IV percentile (52w): 30 (DB)

What invalidates this thesis

A Q3 order print that shows hyperscaler pull-ins finishing, or another leg down in NVDA-linked hardware, keeps the stock under the $279.22 breakeven through Nov 20.