Bullish option buyers are tucking into Bed Bath & Beyond ahead of its quarterly report.
More than 5,800 February 62.50 calls traded in a strong buying pattern yesterday, with prices rising from $1.54 to $1.95, according to OptionMonster's tracking systems. The volume was more than 3.5 times higher than the strike's open interest at the beginning of the day, indicating new activity.
The calls, which lock in the price where traders can buy the stock, are looking for shares to gain roughly 6.5 percent by expiration in mid-February. But if the stock is below the $62.50 strike price at that time, the calls will expire worthless.