Chewy Shares Fall Sharply On Q2 Results, But Options Traders See Rebound Coming

Chewy CHWY shares fell sharply on Thursday after the company reported second-quarter financial results.

On CNBC’s "Options Action,"  Mike Khouw of Optimize Advisors said Chewy traded about 5x its average daily options volume on Thursday, with calls outpacing puts volume.

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There was a buyer of 900 of the Sept. 8 weekly 24-calls at an average price of 70 cents per contract, Khouw mentioned.

Trader sees Chewy’s stock recovering by the end of next week.

Chewy reported second-quarter net sales of $2.78 billion, which was up 14.3% year-over-year. The net sales came in ahead of a Street consensus estimate of $2.76 billion. The company reported earnings per share of 15 cents in the second quarter, beating a Street consensus estimate of a loss of 5 cents per share.

Price Action: Chewy shares dipped 12.3% to close at $23.98 on Thursday.

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