Despite the feel-good story surrounding Bed Bath & Beyond, one trader is betting big that the stock is about to get put through the wash.
"We did see a big and unusual trade in Bed Bath & Beyond," said "Options Action" trader Mike Khouw on "Fast Money" Tuesday. "We saw someone buy 19,000 of the May 14-puts. They spent $0.67 per contract."
Since each options contract is worth 100 shares of stock, this trader's purchase of 19,000 puts equates to a bet worth just under $1.3 million that Bed Bath & Beyond could fall as much as 20 percent by the time the contracts expire in May.
"I think they're probably targeting earnings, which [Bed Bath & Beyond] is reporting on April 10. [The stock] has moved an average of over 13 percent over the last eight quarters when they report," Khouw said.
Shares of Bed Bath & Beyond were slightly lower on Wednesday.