Shares of video game retailerGameStop (GME) are down nearly 45 percent in the past year, nearly triple the amount the S&P 500 has declined. One trader sees a further decline in the coming months. That’s based on the March $21 puts. With 90 days until expiration, 7,230 contracts traded compared to a prior open interest of 103, for a 70-fold rise in volume on the trade. The buyer of the puts paid $4.58 to get in. Shares recently traded right around $21, making this an at-the-money options play. The stock has a 52-week low of $19.40. The video game retailer failed to make a profi...

Shares of cosmetic retailerSally Beauty Holdings (SBH) have lost nearly 42 percent in the last year. One trader sees a further drop in the weeks ahead. That’s based on the January $10 puts. With 36 days until expiration, 7,502 contracts traded compared to a prior open interest of 349, for a 22-fold rise in volume on the trade. The buyer of the puts paid $0.20 to make the bearish bet. Shares recently traded for about $12.00, so they’d need to lose about $2, or about 17 percent, for the option to move in-the-money. It would also mean the stock breaking through its recent 52-week low of...

Shares of media conglomerateParamount Global (PARA) have struggled in the past year, with a 37 percent drop in shares. One trader sees a further decline ahead. That’s based on the February 2023 $20 put. With 65 days until expiration, 12,703 contracts traded compared to a prior open interest of 274, for a 36-fold rise in volume on the trade. The buyer of the puts paid $2.05 to make the bearish bet. The stock recently traded just under $20, making this an at-the-money trade. The stock has a 52-week low closer to $15, so a further drop lower in the coming weeks is possible. The media...

Shares of tech giantMicrosoft (MSFT) have underperformed the market this year, with a 27 percent drop. One trader sees a rebound in the next month. That’s based on the January $265 calls. With 31 days until expiration, 4,094 contracts traded compared to a prior open interest of 191, for a 21-fold rise in volume on the trade. The buyer of the calls paid $2.93 to get in. Shares recently went for about $246, so they would need to rise about $19, or 7.7 percent, for the trade to move in-the-money. The strike price is still well under the stock’s 52-week high of $344 per share. Despite...

Shares of 3D world-building companyRoblox (RBLX) are down about 75 percent in the past year. One trader sees a further decline in the coming weeks. That’s based on the January 13th $30 puts. With 32 days until expiration, 5,037 contracts traded compared to a prior interest of 238, for a 21-fold rise in volume on the trade. The buyer of the puts paid $2.19 to make the downside bet. Shares recently traded for about $32, so the stock would need to drop about 7 percent for the option to move in-the-money. There’s certainly more room for downside, as shares have a 52-week low just under $...

Shares of money centerBank of America (BAC) are down about 25 percent in the past year, underperforming the S&P 500 by about 9 points. One trader sees a rebound in the first half of 2023. That’s based on the June $49 calls. With 188 days until expiration, 3,021 contracts traded compared to a prior open interest of 147, for a 21-fold rise in volume on the trade. The buyer of the calls paid $0.11 to make the bullish bet. The stock recently traded for about $33, so shares would need to rise $17, or 48 percent, for the option to move in-the-money. With a 52-week high of $50 per share...

Shares of Chinese entertainment companyiQIYI (IQ) are down over 40 percent in the past year. One trader sees rebound ahead for shares. That’s based on the June 2023 $3.50 calls. With 189 days until expiration, 15,088 contracts traded compared to a prior open interest of 204, for a 74-fold rise in volume on the trade. The buyer of the calls paid $0.89 to make the bullish bet. Shares recently traded just near $3.50, making this an at-the-money trade. The stock has traded as high as $5.77 in the past year, so the strike price is more than reasonable. The company saw revenues decline ...

Shares of coal producerPeabody Energy Corporation (BTU) are up 227 percent over the past year amid a strong energy market. One trader sees a further year-end rally for the stock. That’s based on the December 30 $32 call. With 23 days until expiration, 4,043 contracts traded compared to a prior open interest of 128, for a 32-fold rise in volume on the trade. The buyer of the calls paid $1.10 to make the bet. The stock recently traded for just under $30, so shares would need to rise $2, or about 6.5 percent, for the option to move in-the-money. Peabody shares have pulled back from t...

Shares of telecom companyAT&T (T) are up about 8 percent over the past year, thanks in part to a strong rally over the past few weeks. One trader sees a pullback in shares in the month ahead. That’s based on the January 2023 $19 put. With 31 days until expiration, 9,297 contracts traded compared to a prior open interest of 250, for a 37-fold rise in volume on the trade. The buyer of the puts paid $0.41. Shares recently traded right around $19, making this an at-the-money trade. The stock set a 52-week low of $14.46 back in late September before making a big move higher. The te...

Shares of mortgage REITAGNC Investment Corp (AGNC) have slid 35 percent over the past year. One trader sees a further decline in the months ahead. That’s based on the June 2023 $7.00 put. With 192 days until expiration, 32,159 contracts traded compared to a prior open interest of 358, for a 90-fold rise in volume on the trade. The buyer of the puts paid $0.26 to make the bet. AGNC stock recently traded near $10, so the stock would need to fall about $3, or 30 percent, in the next six months for the option to move in-the-money. Such a move is possible, as AGNC shares bottomed out at $...