Traders Anticipating Big Rally Ahead For Bed Bath & Beyond

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that Bed Bath & Beyond Inc BBBY traded 7.8 times its average daily volume on Tuesday. “The flow is only about 65 million shares. The options volume represents about 3 times the flow,” he added.

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There were buyers of 100,000 of the January 2023 weekly 80-calls at an average price of $3.85 per contract, Khouw mentioned. Traders see a 306% upside in Bed Bath & Beyond’s shares by January expiration.

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BBBY Price Action: Shares of Bed Bath & Beyond shares gained 29.06% to settle at $20.65 on Tuesday.

Photo: Courtesy of Mike Mozart on flickr