COHR — Nov 310/410 call spread

Coherent reports fiscal Q1 on Nov 4 after fiscal 2026 revenue of $7.12B, up 23% from $5.81B, with capex up from $0.44B to $1.1B as NVIDIA's $2B March investment funds doubled indium-phosphide wafer capacity for 1.6T transceivers. The stock rose 8.3% on the week, yet November IV of 80% still sits below 60-day realized vol of 102%, so the 310/410 call spread costs $26.03 on a $100 width through the print.

Structure

  • long call 310 2026-11-20
  • short call 410 2026-11-20

Signals

  • FY2026 revenue: $7.12B (+23% YoY) (DB)
  • Capex FY25 to FY26: $0.44B to $1.1B (DB)
  • NVIDIA strategic investment: $2B (Mar 2026) (DB)
  • Nov IV vs 60d realized: 80% vs 102% (DB)

What invalidates this thesis

A fiscal Q1 guide where 1.6T transceiver pricing falls faster than unit volume grows sends the stock back through $310 and the spread expires worthless.