Shares of pharmaceutical drug manufacturerEli Lilly and Company (LLY) are up 37 percent in the past year. However, the share price has started to sag – and one trader sees the potential for a further decline in the months ahead. That’s based on the May 2023 $310 puts. With 84 days until expiration, 4,464 contracts traded compared to a prior open interest of 159, for a 28-fold rise in volume on the trade. The buyer of the puts paid $10.25. Eli Lilly shares recently traded for about $330, so the stock would need to drop about $20, or about 6 percent, for the option to move in-the-money...

Shares ofHome Depot (HD) slid nearly 7 percent on Tuesday following the company’s latest earnings report and outlook. One trader sees shares trending lower in the coming months. That’s based on the April $270 puts. With 57 days until expiration, 5,766 contracts traded compared to a prior open interest of 131, for a 44-fold rise in volume on the trade. The buyer of the puts paid $4.58 to make the bearish bet. Shares slid to about $296 following the earnings report, so Home Depot would need to drop another $26, or just under 10 percent, for the options to move in-the-money. The strike ...

Shares ofCarnival Cruise Lines (CCL) have been cut nearly in half over the past year. One trader sees a decline in shares continuing in the coming months. That’s based on the September $12 puts. With 205 days until expiration, 5,672 contracts traded compared to a prior open interest of 181, for a 31-fold rise in volume on the trade. The buyer of the puts paid $2.14 to make the bearish bet. Shares recently traded for about $11.30, so the option is already about $0.70 in-the-money. Shares have strongly rebounded in recent weeks from their 52-week low of $6.11. The cruise line is sti...

Shares of railroadUnion Pacific Corporation (UNP) are down about 20 percent over the past year. One trader sees a rebound, although it may take two years to play out. That’s based on the January 2025 $220 calls. With 696 days until expiration, 4,100 contracts traded compared to a prior open interest of 192, for a 21-fold rise in volume on the trade. The buyer of the calls paid $22.80 to make the bullish bet. Shares recently traded for just over $200, so the stock would need to rise about 10 percent for the option to move in-the-money. The stock has a 52-week high just under $279. ...

Shares of biopharmaceutical companyGilead Sciences (GILD) have rallied about 37 percent in the past year. One trader sees a pullback for shares in the weeks ahead. That’s based on the March $86.50 puts. With 25 days until expiration, 6,508 contracts traded compared to a prior open interest of 236, for a 27-fold rise in volume on the trade. The buyer of the puts paid about $5.00 to make the bearish bet. Shares recently traded close to $83.50, making the options about $4.00 in-the-money. Gilead is closer to its 52-week high of $89.74, but has started to decline in recent sessions. O...

Shares of oil and gas companyDevon Energy (DVN) got knocked down nearly 11 percent following their latest earnings report earlier this week. One trader sees shares bouncing higher in the coming weeks. That’s based on the March $55 calls. With 28 days until expiration, 6,162 contracts traded compared to a prior open interest of 120, for a 51-fold rise in volume on the trade. The buyer of the calls paid $3.60 to make the bullish bet. Share recently traded for about $57 following their big drop, so the option is just over $2.00 in-the-money. Over the past year, shares have traded betwee...

Shares of beverage behemothThe Coca-Cola Company (KO) dropped earlier this week on missed earnings. One trader is betting on a quick rebound in the weeks ahead. That’s based on the March 24th $61 calls. With 36 days until expiration, 5,133 contracts traded compared to a prior open interest of 11, for a 46-fold rise in volume on the trade. The buyer of the calls paid $0.62 to make the bullish bet. Shares recently traded for about $59.50, so the stock would need to rise about $1.50, or about 2.5 percent for the option to move in-the-money. The strike price is still well under the stock...

Shares of international bankCanadian Imperial Bank of Commerce (CM) have slid over 25 percent in the past year. One trader sees a further decline for the stock in the months ahead. That’s based on the September $35 puts. With 212 days until expiration, 5,500 contracts traded compared to a prior open interest of 158, for a 35-fold rise in volume on the trade. The buyer of the puts paid $0.45 to make the bearish bet. Shares last traded for about $46.50, so the stock would need to fall about $11.50, or about 25 percent, for the options to move in-the-money. CM shares would also need to ...

Shares of department store chainKohl’s Corporation (KSS) are down 44 percent over the past year. One trader sees a potential rebound in the next few weeks. That’s based on the March $30 calls. With 31 days until expiration, 5,143 contracts traded compared to a prior open interest of 116, for a 44-fold rise in volume on the trade. The buyer of the calls paid $3.40 to make the bullish bet. The stock recently traded for about $32, so shares are already $2.00 in-the-money. The stock is also well off its 52-week lows of $23.38. Earnings dropped 60 percent over the past year, even as re...

Shares of apparel manufacturing companyV.F. Corporation (VFC) are down about 55 percent over the past year. One trader sees further downside in the next three months. That’s based on the May $22.50 puts. With 95 days until expiration, 20,019 contracts traded compared to a prior open interest of 245, for an 82-fold rise in volume on the trade. The buyer of the puts paid $0.98 to make the bearish bet. Shares recently traded for about $26, so the stock would need to decline about $4.50, or 15 percent, for the options to move in-the-money. The $22.50 strike price would be a new low for V...