Bed Bath & Beyond Options Traders Betting On Stock Surging Higher By This Much By Friday

Bed Bath & Beyond Inc. BBBY shares rose sharply on Tuesday despite the company reporting weaker-than-expected results for its third quarter.

According to a Wall Street Journal report citing people familiar with the matter, Bed Bath & Beyond has brought on consulting firm AlixPartners as its new restructuring advisor.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said Bed Bath & Beyond traded at 3x average daily options volume on Tuesday.

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There were buyers of 38,790 of the January 13 weekly 2-strike calls at an average price of $0.26 per contract, Khouw mentioned.

The traders see Bed Bath & Beyond’s stock surging at least another 10% by the end of this week.

Price Action: Shares of Bed Bath & Beyond jumped 27.8% to close at $2.07 on Tuesday, and climbed another 17.4% in the after-hours trading session.

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