Beyond Meat Puts Pop as Options Traders Eye Key Level

BYND puts are all the rage today, with a focus on weekly options

Managing Editor
Oct 23, 2019 at 2:57 PM
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The summer feels so long ago for Beyond Meat Inc (NASDAQ:BYND). The faux-meat concern is down 7.5% to trade at $99.26 today, breaching the $100 level for the first time since June 4. Also weighing on the shares is comments from CNBC's Jim Cramer last night on "Mad Money," saying he believes Beyond Meat "can go lower from here" with the company's IPO lock-up period ending on Monday. Amidst all the drama, BYND options traders are making moves.

With around 90 minutes left in trading today, more than 86,000 Beyond Meat put options have changed hands -- double the average intraday amount and volume heading for the 94th percentile of its annual range. The most popular option today is the weekly 10/25 100-strike put, where new positions are being opened. This indicates options traders could be banking on more struggles for BYND leading up to Friday, when the options expire. 

Puts have been more popular than usual in recent weeks. In the last 10 days, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 1.44 puts were bought to open for every call.

Beyond Meat stock has now taken a 59% fall off its July 26 record high of $239.71. And during this channel of lower highs, the shares have faced stiff pressure from their descending 40-day moving average. However, anyone looking for a silver lining could note that BYND's 14-day Relative Strength Index (RSI) was coming in at 22 as of yesterday's close, firmly in oversold territory. In other words, the shares are due for a short-term pop. 

Daily Stock Chart BYND (1)
 

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