Market News

January 4, 2017  Wed 6:16 AM CT

Traders apparently believe that shares of Kroger may drop in coming months.

Our monitoring systems detected bearish option activity in two strikes yesterday:

  • 4,000 February 32 puts were bought mostly for $0.57 against open interest of 2,680 contracts.
  • 2,600 February 31 puts were purchased for $0.35 to $0.40 against open interest of 40 contracts.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

KR fell 2.29 percent to $33.72 yesterday but is up 16 percent in the last three months. The supermarket chain announced mixed results on Dec. 1 and is scheduled to report its next quarterly numbers before the market opens on March 2.

Overall option volume in the name was twice its daily average yesterday. Puts outnumbered calls by a bearish 8-to-1 ratio.

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