Traders buy bubble puts on CoreWeave as neocloud stocks plunge

One of the hottest corners of the artificial intelligence trade had a rough Wednesday. Traders responded by placing bets that the pain is not over yet. Shares of CoreWeave (CRWV) dropped between 14% and 16% on October 14, 2026, sliding to lows around $68. The selloff wiped out a considerable chunk of the stock’s recent gains, and it pulled other so-called neoclouds down with it. Bonds blinked first The trouble did not start with the stock. It started with the debt. Yields on CoreWeave’s $1.25 billion in unsecured bonds due in 2032 climbed to an intraday high of 15%. They closed at approximately 14.5%. Equity traders noticed. Put buying on CoreWeave shares surged, and the options flow showed unusual trading patterns tied to downside protection. The whole neocloud neighborhood felt it CoreWeave was not alone. Nebius and IREN, two other AI-focused cloud providers, fell between 9% and 15% in the same session. Commentary from big names added fuel. Investor Chamath Palihapitiya suggested there could be a bubble forming in private credit backed by AI. Elon Musk also weighed in on social media with critical remarks about the situation. Gartner’s sobering forecast The timing also lined up w...