Market News

November 29, 2016  Tue 7:47 AM CT

Traders are positioning for a possible drop in Bed Bath & Beyond by Christmas.

OptionMonster's tracking program shows that some 6,200 Weekly 44 puts expiring on Dec. 23 were purchased for $1.33 to $1.44 yesterday. This represents new positioning, as open interest in the strike was a mere 67 contracts before the session began.

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)

BBBY fell 0.59 percent to $45.25 yesterday but is up 12 percent in the last month. The home-products retailer is scheduled to report earnings after the close on Dec. 21.

Overall option volume was 5 times greater than average in the name yesterday. Puts outnumbered calls by a bearish 4-to-1 ratio.

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