Could Lumber Liquidators be the ultimate fixer upper? Despite an abundance of bad news, that's exactly what some traders are betting on.
Shares of Lumber Liquidators dropped more than 25 percent Wednesday on a big fourth-quarter earnings miss and the revelation that the company could be the subject of a negative piece in an upcoming episode of CBS' "60 Minutes." Additionally, Lumber Liquidators disclosed in its 10K that the Department of Justice may file criminal charges related to potential violations of import laws.
But while the sharp selloff has some traders looking for cover, options traders saw a buying opportunity.
Nearly 27,000 calls traded hands in the company Wednesday, compared with the typical day of about 1,000.