|Bid||19.68 x 29200|
|Ask||19.70 x 2900|
|Day's Range||19.36 - 20.00|
|52 Week Range||3.43 - 26.16|
|Beta (5Y Monthly)||2.18|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jan 06, 2021 - Jan 11, 2021|
|Forward Dividend & Yield||0.68 (17.94%)|
|Ex-Dividend Date||Mar 12, 2020|
|1y Target Est||24.21|
The Nasdaq Composite (NASDAQINDEX: ^IXIC) has been on fire for most of 2020, rebounding from the coronavirus bear market in February and March and posting returns that have crushed other stock market benchmarks. The Nasdaq makes short-interest figures available on the stocks that list there, and among the most frequently shorted stocks are two interesting companies with very different business models: Bed Bath & Beyond (NASDAQ: BBBY) and National Beverage (NASDAQ: FIZZ).
On Tuesday, shares of Bed Bath & Beyond (NASDAQ: BBBY) saw unusual options activity. After the option alert, the stock price moved down to $20.77. * Sentiment: BULLISH * Option Type: SWEEP * Trade Type: CALL * Expiration Date: 2020-12-18 * Strike Price: $22.00 * Volume: 481 * Open Interest: 7157Three Ways Options Activity Is 'Unusual'Extraordinarily large volume (compared to historical averages) is one indication of unusual options market activity. Volume refers to the total number of contracts traded over a given time period when discussing options market activity. The number of contracts that have been traded, but not yet closed by either counterparty, is called open interest. A contract cannot be considered closed until there exists both a buyer and seller for it.Another sign of unusual activity is the trading of a contract with an expiration date in the distant future. Usually, additional time until a contract expires allows more opportunity for it to reach its strike price and grow its time value. Time value is important to consider because it represents the difference between the strike price and the value of the underlying asset.Contracts with a strike price far from the underlying price are also considered unusual because they are defined as being "out of the money". This occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made because the underlying asset value is expected to change dramatically in the future, and the buyer or seller can take advantage of a greater profit margin.Bullish And Bearish Sentiments Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price.Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity.Trading Options With These Strategies Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.For more information to understand options alerts, visit https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alertsSee more from Benzinga * Click here for options trades from Benzinga * Unusual Options Activity Insight: Aurora Cannabis * Analyzing Tesla's Unusual Options Activity(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
If you are looking for the best ideas for your portfolio you may want to consider some of Miller Value Partners top stock picks. Miller Value Partners, an investment management firm, is bullish on Bed Bath & Beyond Inc (NASDAQ:BBBY) stock. In its Deep Value Strategies Q3 2019 investor letter – you can download a […]