Every Headline Number Went the Right Way
Fastly's release reported, for the quarter ended September 30, 2026:
Benzinga put consensus at $187.8 million in revenue and $0.12 in EPS. Fourth-quarter guidance calls for revenue of $198 million to $202 million and EPS of $0.16 to $0.18, against estimates of $196.9 million and $0.13. Full-year revenue guidance moved to $744 million to $748 million from $732 million to $746 million, and full-year EPS guidance to $0.61 to $0.63 from $0.50 to $0.54.
The Leadership Change in the Same Release
Fastly also said Scott Lovett, its president of go-to-market, plans to retire in 2027 and that it has begun searching for a chief revenue officer. Per a conference call summary, Lovett will stay through the transition. Seeking Alpha tied the drop to the results and the retirement news together. Benzinga wrote that the decline "could be due to" the management change and/or guidance that was not as strong as hoped, which is a possible explanation rather than a confirmed one.
Benzinga had FSLY down 17.5% at $17.30 after hours, and Cboe's after-hours quote was $17.58, about 16.4% below the $21.04 close. The regular session itself had been nearly flat. The stock's 52-week range is $7.87 to $34.82.
$17.02 Was the Line for Friday's Straddle
At the close, per Cboe's delayed quotes, the November 6 $21 call was quoted $1.85 to $2.25 and the $21 put $1.75 to $2.10. At midpoints the straddle cost about $3.98, roughly 18.9% of the share price, with break-evens near $17.02 and $24.98. Implied volatility on those two-day contracts was around 310%.
At $17.58, the $21 put would hold about $3.42 of intrinsic value, and at Benzinga's $17.30 about $3.70. Both are short of the $3.98 the straddle cost, so on those prints the stock sits just inside the lower break-even. A move of about another 1% to 3% lower at Thursday's open would carry it past that line, which is why a straddle this close to its break-even can swing between a gain and a loss on small moves.
A 10,700-Contract Call Strike With 57 Open
Wednesday's option volume was about 26,000 calls and 10,600 puts. The busiest contract by far was the November 6 $21 call, at 10,736 contracts against open interest of 57, followed by the November 6 $24.50 call at 5,115 against 248. On the put side, the November 6 $16.50 put traded 2,033 against 46. Volume does not reveal who bought or sold, or whether trades opened or closed positions, so it cannot say how anyone was positioned. The 30-day IV index ended at 113.7%, down 1.3 points.
Gaps Down on Good Numbers
When a stock falls on a report that beat and raised, the options read-through is the same as for any gap: near-dated event premium usually collapses on the next session, so long-premium positions bought for the event lose time value while the stock's direction decides intrinsic value. Short calls above the after-hours price and long puts below it are the positions most exposed to how the open goes. Our implied volatility guide explains how IV tends to behave after earnings, and the OCC options disclosure document covers the risks of standardized options.
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*By the OptionsPilot Editorial Team. Published November 4, 2026, 7:26 PM PT. This article is for education only and is not investment advice. Options involve risk and are not suitable for all investors.*
