(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.
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