Big Lots, Inc. (BIG) Puts Popular Amid Post-Earnings Plunge

Big Lots, Inc. is down more than 15% following its quarterly earnings report

Dec 5, 2014 at 2:40 PM
facebook X logo linkedin

A wider-than-expected third-quarter loss and a price-target cut to $52 from $53 at Deutsche Bank have sent shares of Big Lots, Inc. (NYSE:BIG) decidedly lower today. At last check, the stock was off 15.4% at $40.56 -- earning BIG a spot on the short-sale restricted list. Against this backdrop, puts are trading at 11 times what's typically seen at this point in the day, as speculators look for alternate ways to bet bearishly on the security.

Specifically, the equity's December 40 put has seen the most action today, with 1,704 contracts on the tape. A healthy portion of these puts have traded at the ask price, and fewer than 200 contracts are currently in residence at this round-number strike, making it safe to assume new positions are being purchased. Delta on the put is docked at negative 0.42, suggesting a roughly 2-in-5 chance the position will be in the money at the close on Friday, Dec. 19, when front-month options expire.

From a wider sentiment perspective, today's put-skewed session just echoes the withstanding trend. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio of 2.63 ranks in the 95th annual percentile. Considering Big Lots, Inc. (NYSE:BIG) was up nearly 49% year-to-date heading into today's session, this recent rush of put buying may have been at the hands of shareholders protecting paper profits against an unexpected decline.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI