Bullish Options Traders Bet Big on Firefly Aerospace’s (FLY) “Stairway to Seven” Return to Flight

Bullish option flow has surfaced in Firefly Aerospace (FLY) this week, positioning for a significant volatility expansion coinciding with two critical corporate events.

On February 17, 2026, our Unusual Activity Service identified a large purchase of 10,700 February 27 expiration $25.00 calls for $0.55 to $0.65 per contract while the underlying stock traded in a range of $19.57 to $19.97. This volume was statistically significant, exceeding the prior open interest of 1,034 contracts by a factor of ten, indicating a new and aggressive directional bet.

The trade has rapidly appreciated in value as market anticipation builds. By midday today, with Firefly shares trading at $21.95, those same $25.00 call options traded as high as $1.45. For traders who entered at the low end of the initial range ($0.55), this move represents a maximum unrealized gain of 163.64% in less than 24 hours. Even for those entering at the higher price of $0.65, the position generated returns of 123.08%. This performance highlights the impact of implied volatility expansion as binary events approach, independent of the stock price reaching the strike price.

This performance illustrates the exceptional power of options leverage when the directional thesis proves correct, though it’s important to note that this same leverage can work against traders when market moves go in the opposite direction.

“Stairway to Seven” and Earnings Convergence

The “why” behind this trade appears to be the convergence of two high-impact catalysts within the option’s short lifespan. The primary driver is the “Stairway to Seven” mission, a return-to-flight launch for Firefly’s Alpha rocket scheduled for Friday, February 20. This mission is critical for validating recent engineering upgrades to the vehicle’s first-stage thermal protection.

FLY was last up 4.71% at $21.34.