Extraordinary Returns in Warby Parker Call Options

Bullish option traders are logging extraordinary gains in Warby Parker (WRBY) today on one of the most explosive option trades of the month.

On Dec. 5, our Unusual Option Activity Service identified significant bullish call buying, with 8,000 12December 20 calls bought in mostly one order for $0.20-$0.25 above the existing open interest of just 16 contracts, with WRBY shares trading at $18.60-$18.73.

Those 12December 20 calls traded as high as $8.95 today with the stock at $28.96, delivering extraordinary returns of approximately 3877.78% from the initial midpoint entry price of $0.225. Meanwhile, WRBY shares gained approximately 55.11% from their initial midpoint trading level around $18.67, demonstrating how options can deliver dramatically amplified returns compared to simply owning the underlying stock.

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.

Google AI Glasses Partnership Ignites Rally

The timing of the December 5th call buying proved remarkably prescient, as just three days later the company announced a groundbreaking development that would send shares soaring. On December 8-9, 2025, Warby Parker shares spiked over 13% in heavy trading after Google publicly confirmed that its first pair of AI-powered glasses co-developed with Warby Parker would launch in 2026.

In an SEC filing on December 9th, Warby Parker confirmed that the AI glasses—the first line of intelligent eyewear incorporating multimodal AI with prescription and non-prescription lenses—would officially launch next year. The announcement provided the first concrete timeline for the product’s release, immediately captivating the market and triggering one of the largest single-day moves in the company’s trading history.

The collaboration builds on a strategic partnership announced in May 2025, where Google committed up to $150 million to support the initiative. This included up to $75 million to fund Warby Parker’s product development and commercialization costs, plus an additional $75 million in a potential equity investment contingent on hitting certain milestones. The financial backing both validates Warby Parker as a design and distribution partner and provides the company with significant resources to pursue what management describes as its AI-driven “next act.”

Hedgeye’s “10-Bagger” Call Amplifies Momentum

Adding explosive fuel to the rally, research firm Hedgeye issued a highly bullish call on December 9th, declaring Warby Parker “the retail stock to own in 2026” and arguing the stock could be a “10-bagger” over the next five years, starting from roughly $20 per share. The bold projection underscored the potential transformative impact of the Google partnership and Warby Parker’s strategic positioning within the evolving wearable technology landscape.

The Hedgeye endorsement resonated particularly strongly with options traders, as it suggested the AI glasses partnership could fundamentally revalue the company beyond its traditional eyewear retail multiple. For traders positioned in the December 12th expiration calls with a $20 strike price, the combination of the Google announcement and the Hedgeye endorsement created ideal conditions for the nearly 3,900% returns captured in just days.

Third Act Strategy Positions Company at AI Forefront

During the company’s third-quarter earnings call in November, co-founder and co-CEO Neil Blumenthal articulated Warby Parker’s strategic evolution. He described the company as entering its “third act defined by innovation through AI,” following the first act of establishing “one of the first made on the internet lifestyle brands” and the second act of expanding to brick-and-mortar stores.

Under the partnership, Warby Parker will design and manufacture the eyewear, which will be equipped with Google’s technology ecosystem including the Android XR platform and Gemini AI assistant. The next-generation AI-powered glasses are envisioned to seamlessly integrate into daily life, featuring built-in speakers, microphones, and cameras. Users will be able to interact with Gemini AI for real-time assistance, ranging from information retrieval to hands-free communication, with some versions expected to incorporate in-lens displays offering features like augmented reality navigation and instant language translation.

Strong Core Business Supports Tech Pivot

The AI glasses announcement came on the heels of solid operational performance in Warby Parker’s core eyewear business. The company has logged record member counts for 27 consecutive quarters, with unique members now exceeding 12.6 million—up nearly 35% year-over-year as of Q3 2025. Management raised full-year 2025 guidance, now expecting $871-$874 million in revenue with mid-teens growth and improving profitability metrics.

Co-CEO Dave Gilboa emphasized the strategic fit of the partnership: “Looking ahead, we believe multimodal AI is perfectly suited for glasses, enabling real-time context and intelligence to augment a wearer’s surroundings as they move through the world. We couldn’t be more excited to be partnering with Google to bring together the best of AI and the best of eyewear.”

The convergence of the Google AI glasses announcement on December 8-9, the Hedgeye “10-bagger” call, and strong fundamental momentum in the core business created an ideal environment for the December 12th call options to capture extraordinary upside. The timing of the call buying on December 5th at 3:50 PM, positioned just three days before the market-moving announcements, demonstrates the exceptional nature of the unusual options activity that preceded one of Warby Parker’s most explosive rallies in company history.

WRBY was last down on the day by 0.22% at $29.55.