Pinterest Stock: Unusual Options Activity and Elliott Investment’s Impact

As of Friday morning, March 13, 2026, S&P 500 futures are up 0.33%. Despite this, the index has experienced losses in three out of the last four trading days. Several economic indicators will influence the market’s direction today, including oil prices, the January core PCE (personal consumption expenditures) price index, the second Q4 2025 GDP estimate, and the University of Michigan’s U.S. Consumer Sentiment Index.

University of Michigan Consumer Sentiment Index

Economists predict the March figure for the University of Michigan Consumer Sentiment Index will be 55.0, a decrease of 1.6 points from February. Although not the lowest reading in the past year – November 2025 recorded a low of 51.0 – it remains significantly below the 71.7 reading when President Trump took office. University of Michigan Consumer Sentiment Index rates the relative level of current and future economic conditions. The preliminary data tends to have a greater impact, compiled from a survey of around 500 consumers. A higher than expected reading is generally positive for the USD, while a lower reading is considered negative.

Pinterest’s Unusual Options Activity

On Thursday, March 12, 2026, Pinterest’s (PINS) share volume reached 29.19 million, approximately 8% higher than its 30-day average. Options volume was 139,715, 3.1 times higher than the 30-day average of 45,292, marking the second-highest level in the past three months. Increased options volume often signals unusual activity.

Decoding the Options Trades

Out of 2,000 unusually active options, three trades accounted for 90% of Pinterest’s options volume on Thursday. These trades involved both set and call options.

Bearish Sentiment: The $17 Put Option

Two trades occurred for the September 18 $17 strike put option: one for 1,000 contracts at $2.44 and another for two contracts. The annualized return of 32.3% suggests bearish sentiment, although the lengthy 190-day DTE could result in having to buy PINS stock at a higher price in September.

Bullish Strategies: $21 and $22 Call Options

Large trades also occurred for both the $21 and $22 call options – 30,000 and 32,000 contracts each, representing 99.4% and 99.3% of the total volume for those strike prices, respectively. These trades suggest three possible strategies:

1. Bull Call Spreads

A Bull Call Spread involves buying a $21 call and selling a $22 call. The net debit for these trades ranged from $0.22 to $0.24. The maximum potential loss is $24, while the maximum potential profit is $78, representing a 325% return. However, the probability of breaking even (share price above $21.24) or reaching maximum profit (share price above $22) is low, estimated at 20.1% and 14.4%, respectively.

2. Bear Call Spreads

A Bear Call Spread involves selling the $21 call and buying the $22 call, generating a net credit. The net credit for this strategy is approximately $0.10. The maximum loss is $90, while the maximum profit is limited to the net credit received. The probability of making a profit is high, at nearly 79%, if the share price remains below $21.10 at expiration.

3. Ratio Call Spreads

A Ratio Call Spread is similar to a Bull Call Spread but involves selling at least two $22 calls for every one $21 call purchased. This can result in a net credit, but also exposes the trader to potentially significant losses if the share price rises sharply above $22.

Elliott Investment Management’s Stake

In early March 2026, Elliott Investment Management announced a $1 billion additional investment in Pinterest through convertible senior notes maturing on March 1, 2031, paying 1.75% interest. This investment triples Elliott’s stake, increasing its ownership to 72.01 million shares, or 10.1% of the company. WhaleWisdom.com reports that this represents 1.4% of Elliott’s $117.32 billion in assets under management.

Bottom Line

Elliott Investment Management’s significant investment, coupled with Pinterest’s announced $2 billion share repurchase program, adds strength to the bullish argument. However, the unusual options activity on Thursday suggests a degree of caution, with the bearish bets appearing to be the safer option. The Personal Consumption Expenditures Price Index released on March 13, 2026, showed a 2.8% increase from the previous month, and 2.9% from December 2025. Personal Consumption Expenditures Price Index reflects changes in the prices of goods and services purchased by consumers in the United States.