Markets

Bulls shop at Bed Bath & Beyond

(The following is an example of notable trading cited on optionMONSTER's InsideOptions Pro service yesterday.)

Bed Bath & Beyond is trying to bounce from long-term lows, and the bulls are piling in.

optionMONSTER's Heat Seeker system detected the purchase of about 6,800 Weekly 58.50 calls expiring this Friday for $0.83 to $1.06 and 3,700 Weekly 59 puts for $0.37 to $0.86. This represents fresh buying, as there was barely any open interest in both strikes before the session began.

Long calls lock in the price where investors can buy a stock, letting them profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis. (See our Education section)

BBBY rose 3.26 percent to $59.26 yesterday but is still down some 25 percent on the year. The home-product retailer has missed revenue expectations for the last four quarters, most recently on Sept. 24.

Total option volume in the name topped 16,000 yesterday, 7 times its daily average for the last month. Overall calls outnumbered puts by 13 to 1, a reflection of the session's bullish sentiment.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

BBBY

Other Topics

Options

Latest Markets Videos