• Chewy recently saw a surge in options activity, with put contracts far outpacing calls and signaling cautious sentiment ahead of its March 25 earnings release.

• This trading pattern is unfolding even as Chewy emphasizes its growing subscription base, improving operational leverage, and the build-out of its veterinary services business.

• With options markets signaling caution around the upcoming earnings release, we’ll examine how this shapes Chewy’s evolving investment narrative.

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To be comfortable owning Chewy, you really have to believe in the durability of its pet‑care ecosystem: a sticky subscription base, improving operational leverage, and the higher‑value opportunity in veterinary services, all while the company stays consistently profitable. That thesis has not changed much, but the recent spike in bearish options positioning ahead of the March 25 earnings call adds a new short‑term wrinkle. It suggests the market is suddenly more focused on near‑term execution risk around margins and growth, especially given Chewy’s rich earnings multiple and weak share price performance over the past few years. Layer in ongoing leadership turnover, including the upcoming CTO retirement, and the bar for reassuring guidance feels higher. If earnings or commentary disappoint, the current caution could quickly become a more sustained concern.

However, there is one execution risk investors might be underestimating right now. Despite retreating, Chewy’s shares might still be trading above their fair value and there could be some more downside. Discover how much.

Six Simply Wall St Community members currently place Chewy’s fair value between about US$44 and US$63, highlighting very different expectations. Set that against the recent surge in bearish options activity and leadership turnover, and you can see why it pays to weigh several viewpoints before deciding how Chewy’s next earnings update might reshape the story.

Explore 6 other fair value estimates on Chewy – why the stock might be worth just $44.41!

Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your Chewy research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

• Our free Chewy research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Chewy’s overall financial health at a glance.