Options Trading News

Kroger has bounced in the last two weeks, and now the bears are back.

optionMONSTER's Depth Charge monitoring program detected the purchase of 1,200 June 23 puts for $0.92 and the sale of an equal number of June 21 puts for $0.12. Volume exceeded open interest at both strikes.

This bearish put spread cost $0.80 to open and will earn a maximum profit of 150 percent if the grocery giant closes at or below $21 on expiration. (See our Education section)

KR is down 0.63 percent to $22.21 this morning and about 8 percent in the last three months. It climbed after finding support at $22 in mid-May but then rolled over at $22.50.

Although the company's earnings have been strong, it's suffered bearishness in the broader supermarket industry as discount retailers and boutique chains take customers.

Overall option volume in KR is twice the average amount so far today, according to the Depth Charge. Not a single call has traded so far in the session.