As the sentiment turns
- GLOB call volume elevated this week
- Stock up as much as 37% from May low
- Negative industry sentiment overdone?
It’s been an active past few days—and weeks—for Globant (GLOB), a Luxembourg-based IT services company.
Tuesday was the second day in a row GLOB landed on the LiveAction scan for unusual call options volume, which was running around 17 times average in the early afternoon:
Source: Power E*TRADE. (For illustrative purposes. Not a recommendation.)
The 2,690 contracts that changed hands paled in comparison to the more than 10,000 that crossed the tape on Monday, when GLOB had the day’s highest relative call volume.
On both days, though, the activity was concentrated in the June $50 and $55 calls, which on Tuesday were the only two contracts with volume above 150 contracts, as well as the only ones with open interest (OI) above 1,000 (3,600 and 5,600, respectively).
Those relatively modest totals wouldn’t necessarily attract much attention in the wider trading universe, but in GLOB they may highlight a larger narrative. The stock pulled back nearly 5% on Tuesday after jumping 10% on Monday, at which point it was up nearly 37% from its May 13 intraday low of $32.50—its lowest low in more than nine years:
Source (data): Power E*TRADE. (For illustrative purposes. Not a recommendation.)
Given that low represented a 90.8% correction from the stock’s November 2021 record close of $354.44, it’s likely many traders and investors had long ago removed GLOB from their watchlists. But the recent rebound and bump in options activity—punctuated by a 14.2% post-earnings jump on May 15—may have put the ticker back on some trading screens.
While there’s been debate on the Street regarding the outlook for IT services, Morgan Stanley & Co. analysts expect demand for GLOB to rise as companies and look for partners to help them “navigate the complexity of AI.” They also noted GLOB’s May earnings release showed “signs of stabilization,” and that although “persistent negative sentiment toward global IT services” had driven GLOB’s valuation to record lows, they believed a “reacceleration towards industry-average growth of mid-single-digits by year-end should help narrow the stock’s +30% valuation discount versus peers.”1
This week’s call options activity, by definition, has short-term implications—the contracts expire in less than three weeks. But at least in terms of the traders and investors who bought those calls, the activity may represent a level of bullish interest the stock hasn’t experienced in a while.
Today’s numbers include: mortgage applications (7 a.m.), ADP private employment report (8:15 a.m.), Factory Orders (10 a.m.), ISM Services Index (10 a.m.), EIA Petroleum Status Report (10:30 a.m.), Fed Beige Book (2 p.m.).
Today’s earnings include: Broadcom (AVGO), CrowdStrike (CRWD), Five Below (FIVE), Macy's (M), Medtronic (MDT), PVH (PVH), Thor Industries (THO).
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1 MorganStanley.com. 1Q26: Stabilizing, As Expected. 5/14/26.