Photonics stock Lumentum Holdings Inc (NASDAQ:LITE) is up 2.8% to trade at $919.16 at last check, after the CEO of the Nvidia (NVDA)-backed company told Bloomberg that its products are sold out through 2027 thanks to strong demand amid AI-infrastructure growth.
LITE has already added 139.8% in 2026, and sports an impressive 1,522.6% year-over-year lead. Shares yesterday surged to a record high of $960 before settling lower, a multi-week climb that came after the stock bounced off familiar support at the 40-day moving average in late March.
The security could benefit from a short squeeze. Short interest rose 6.5% in the last two reporting periods, and the 11.49 million shares sold short now make up 16.2% of LITE's available float.
An unwinding of pessimism among short-term options traders could also provide tailwinds. This is per the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.02, which sits in the 88th percentile of its 12-month range.
Drilling down to today's options activity, 10,000 calls and 6,214 puts have already exchanged hands today, which is double the amount typically seen at this point. The most active contract is the weekly 4/10 1,000 call, where new positions are being opened. This means options traders anticipate more upside for LITE by today's close, when these contracts expire.
