Bed Bath & Beyond Options Traders Bet Big As Stock Rallies

On Monday, Bed Bath & Beyond BBBY announced the release of Our Table, a modern collection of tableware and dinnerware.

The exclusive collection is aimed at customers looking to update their kitchens before beginning to gather with guests and share food and recipes after over a year living with social restrictions brought on by the COVID-19 pandemic.

Investors from Reddit and institutions have also recently gathered around Bed Bath & Beyond and, for its second squeeze this year, the stock shot up 84% between May 26 and June 2 before topping out at $44.51.

The stock has spent the last three trading days consolidating its bullish move north, but on Tuesday made another attempt to break out.

A number of options traders believe Bed Bath & Beyond’s stock is headed higher still and purchased $998,417 in bullish call contracts.

Why It’s Important: When a sweep order occurs, it indicates the trader wanted to get into a position quickly and is anticipating an imminent large move in stock price.

A sweeper pays market price for the call option instead of placing a bid, which sweeps the order book of multiple exchanges to fill the order immediately.

These types of call option orders are usually made by institutions, and retail investors can find watching for sweepers useful because it indicates “smart money” has entered into a position.

The Bed Bath & Beyond Option Trades: Below is a look at the notable options alerts, courtesy of Benzinga Pro:

At 10:22 a.m., Tuesday a trader executed a call sweep, near the ask, of 207 Bed Bath & Beyond Corporation options with a strike price of $20 expiring on June 11. The trade represented a $331,200 bullish bet for which the trader paid $16 per option contract.

At 10:27 a.m., a trader executed a call sweep, near the ask, of 612 Bed Bath & Beyond Corporation options with a strike price of $50 expiring on July 16. The trade represented a $151,776 bullish bet for which the trader paid $2.48 per option contract.

At 10:27 a.m., a trader executed a call sweep, near the ask, of 300 Bed Bath & Beyond Corporation options with a strike price of $45 expiring on July 16. The trade represented a $101,100 bullish bet for which the trader paid $3.37 per option contract.

At 10:32 a.m., a trader executed a call sweep, near the ask, of 201 Bed Bath & Beyond Corporation options with a strike price of $40 expiring on June 11. The trade represented a $50,451 bullish bet for which the trader paid $2.51 per option contract.

At 10:34 a.m., a trader executed a call sweep, near the ask, of 200 Bed Bath & Beyond Corporation options with a strike price of $43 expiring on Aug. 20. The trade represented a $122,000 bullish bet for which the trader paid $6.10 per option contract.

At 12:02 p.m., a trader executed a call sweep, near the ask, of 250 Bed Bath & Beyond Corporation options with a strike price of $45 expiring on July 16. The trade represented a $82,500 bullish bet for which the trader paid $3.30 per option contract.

At 12:08 p.m., a trader executed a call sweep, near the ask, of 483 Bed Bath & Beyond Corporation options with a strike price of $50 expiring on Aug. 20. The trade represented a $122,000 bullish bet for which the trader paid $3.30 per option contract.

BBBY Price Action: Shares of Bed Bath & Beyond were trading 8.18% higher at $36.76 at last check Tuesday. 

Photo by Anthony92931 via Wikimedia.