Shares of Lowe's have been getting hammered over the past month, and now some traders are betting it will only get worse for the home improvement giant.
On Thursday, the stock dropped more than 2 percent to $68.80, a level not seen in nearly three months. In the options market, bearish bets outpaced bulls by an astounding 21-to-1 ratio, and two trades show that the bears are looking for things to get grizzly with the stock in the near term.
The first notable trade happened in the middle of the session. A trader bought 8,341 contracts of the May 70-strike puts for an average of $1.48 each. A put is a bearish bet allowing purchasers to sell a stock at set price within a specific timeframe.
As each contract controls 100 shares, the trader was betting over $1.2 million that Lowe's will move below $70 in the next two weeks.
But the bears weren't done with Lowe's yet. They came back into the market growling for more puts—and this time they had a much larger appetite.
Toward the end of the session, another trader took a turn at betting that Lowe's shares will be sawed. That trader bought 86,688 of the 67.50-strike May puts for an average of 80 cents each. In this case, the trader is wagering nearly $7 million that Lowe's will sink at least another 3 percent or below $66.70 in two weeks.