BBAI Stock Surges 9.4% Amid Heavy Options Trading on September 16

BigBear.ai Holdings Inc. (NYSE: BBAI) rallied 9.4% on Tuesday as call options activity dominated trading, sparking renewed investor interest in the artificial intelligence defense contractor.

The surge came without specific company news, as traders flocked to options contracts with call volume significantly outpacing put activity. The momentum appears driven by heavy speculative trading rather than fundamental developments.

Options Activity Drives Rally

Trading in BigBear.ai options reached 153,412 contracts by mid-morning, with call options accounting for 144,958 contracts compared to just 8,454 put contracts. The most actively traded contract was the October 3, 2025 $6.50 call, which saw 15,375 contracts traded against open interest of only 1,108 contracts.

Other popular options included the September 19, 2025 $5.50 call with 12,402 contracts and the September 19, 2025 $6 call with 7,035 contracts traded. The heavy concentration in call options expiring in 2025 with strike prices above current levels indicates bullish bets on the company’s future performance.

Recent Performance Context

The stock opened at $5.34 and reached intraday highs of $5.64, settling around $5.48 by mid-day. This represents a significant recovery from the company’s recent struggles following disappointing second-quarter results published in August.

BigBear.ai’s Q2 earnings fell far short of expectations, with the company reporting a loss of $0.71 per share on revenue of $32.5 million, compared to analyst estimates of a $0.06 loss on $40.6 million in revenue. The company also lowered its full-year revenue guidance to between $125 million and $140 million, down from previous targets of $160-180 million.

Technical and Market Factors

The stock had declined over 20% in August following the earnings miss and continues to trade below its 52-week high of $10.36. However, recent technical momentum and the AI sector’s broader appeal appear to be attracting speculative interest.

Market analysts note that BigBear.ai’s elevated short interest of over 29% may have contributed to the sharp price movement as some investors rushed to cover positions. Despite maintaining a strong cash position of $391 million, the company faces ongoing challenges in converting its government contracts into consistent revenue growth.

The AI defense contractor has recently announced new deployments, including enhanced passenger processing technology at Nashville International Airport and strategic partnerships in the UAE. However, these developments preceded Tuesday’s trading activity and do not appear directly linked to the options-driven rally.