Options traders are wagering on C3.ai's price swings as uncertainty looms over the AI industry

C3.ai Inc. (AI) shares dropped by 2.96% to close at $17.03 on Thursday, marking a fourth consecutive day of losses. The stock is now trading 62.22% below its highest price over the past year, as reported by a

. This downward move occurred alongside , with investors exchanging 102,395 contracts—equal to 10.2 million shares—amounting to 137.1% of the company's typical daily trading volume. Among the most active contracts was a call option with an $18 strike price expiring in November 2025, with 22,183 contracts traded, indicating speculation about a possible recovery in the stock.

The stock's weak performance stood out amid mixed results in the broader market, where the S&P 500 declined by 0.99% and the Dow slipped 0.23%. Experts pointed out that C3.ai's challenges mirror broader pressures on technology stocks, as Microsoft and Alphabet saw their shares move in opposite directions. At the same time, Oracle Corporation (ORCL) experienced a 6.69% drop to $256.89, despite receiving a range of

from "Outperform" to "Buy".

Options investors are also monitoring C3.ai's price swings. Selling a put option at the $17 strike could earn a 7.65% return if it expires without being exercised, while writing a covered call at the $18 strike may generate an 11.79% return if assigned, according to a

. These approaches show that traders are making short-term bets on the stock's direction amid ongoing uncertainty about its future prospects.

The AI industry as a whole remains under the spotlight, with OpenAI—the developer of ChatGPT—reportedly considering an IPO within the next two years, according to

. Although no formal schedule has been announced, Capital highlights that OpenAI's capped-profit model and collaborations with Microsoft and Azure could impact its valuation. The company's recent introduction of the "Operator" AI agent and its ambitious Stargate Project, a $500 billion AI infrastructure plan, have fueled investor interest, Capital notes. Still, legal disputes, such as a lawsuit over training data, and heavy dependence on partners like Microsoft, present challenges to OpenAI's growth story, Capital cautions.

Analysts also pointed to C3.ai's latest IBD Relative Strength rating of 71, which suggests improving momentum despite the recent decline, based on

. The company's performance continues to be compared with other major AI players, including Microsoft and Nvidia, both of which are key drivers in the sector's ongoing development.