Shares of online auction siteeBay (EBAY) have lost nearly one-quarter of their value in the past year and are nearly 50 percent off their highs. One trader is betting that the decline will continue in the coming weeks. That’s based on the August $47.50 puts. With 77 days until expiration, 8,187 contracts traded compared to a prior open interest of 153, for a 54-fold rise in volume. The buyer of the puts paid $3.75 for the option. Shares recently traded around $47, so the options are slightly in-the-money. The stock traded as low as $43.28 in the past few weeks, but have since bounced...

Shares of specialty chemical companyAir Products and Chemicals (APD) have been on the decline. One trader is betting on a rebound in the coming months. That’s based on the September $280 calls. With 106 days until expiration, 10,301 contracts traded compared to a prior open interest of 141, for a 73-fold jump in volume on the trade. The buyer of the calls paid $2.95 to get in. Shares recently traded for about $246, so the stock would need to rise about 14 percent for the option to move in-the-money. That would still leave shares well under their 52-week high of $316. The company h...

Shares of carmakerGeneral Motors (GM) have shed over one-third of their value in the past year. One trader sees the possibility for a further decline. That’s based on the July 8 $38 puts. With 37 days until expiration, 10,003 contracts traded compared to a prior open interest of 100, for a 100-fold increase in volume on the trade. The buyer of the puts paid $1.89 to make the trade. Shares last traded around $38.50, meaning that these options are already about $0.50 in-the-money. The stock has just recently bounced off its 52-week low just over $34 per share. While the carmaker has...

Shares of megabankBank of America (BAC) have shed about 13 percent in the past year. One trader sees a potential rebound playing out through the next year. That’s based on the March 2023 $50 calls. With 290 days left on the option, 12,368 contracts traded compared to a prior open interest of 367, for a 34-fold rise in volume on the trade. The buyer of the calls paid $0.55 to get into the trade. Shares recently traded for just under $37, so they would need to rise just over $13, or about 35 percent, for the option to move in-the-money. Shares have a 52-week high right at $50. Reven...

Shares of department storeMacy’s (M) soared nearly 20 percent last Thursday, as the company announced better-than-expected earnings. One trader sees the potential for shares to move higher. That’s based on the July $27 calls. With 46 days until expiration, 20,375 contracts traded compared to a prior open interest of 326, for a 63-fold jump in volume on the trade. The buyer of the calls paid $0.66 to get in. Shares last traded just under $23, so they would need to rise just over $4, or about 18 percent, for the option to move in-the-money. Overall the stock has returned 2 percent i...

Shares of digital communications companyAvaya Holdings (AVYA) have been sliding in recent months. One trader sees further downside ahead in the coming days. That’s based on the June 17th $3.00 put option. With 21 days until expiration, 20,384 contracts traded hands, compared to a prior open interest of 368, for a 57-fold rise in volume on the trade. The buyer of the puts paid $0.53 to bet on a further downside. Shares recently traded for about $3.20, so they’d need to fall just over 6 percent for the option to move in-the-money. Shares are down nearly 90 percent from their 52-week hi...

Shares of video game developerElectronic Arts (EA) have been somewhat rangebound in the past year. However, one trader is betting on a move higher in the coming months. That’s based on the September $150 calls. With 113 days until expiration, 5,049 contracts traded hands compared to a prior open interest of 387, for a 13-fold rise in volume on the shares. The buyer of the calls paid $5.73 to get into the trade. Shares last went for about $137, so they would need to rise $13, or about 9.5 percent, for the options to move in-the-money. The strike price of $150 is right near the stoc...

Shares of coffeehouse chainStarbucks (SBUX) have lost more than one-third of their value in the past year. One trader sees the potential for a rally in shares in the second half of the year. That’s based on the December $85 calls. With 205 days until expiration, 46,245 contracts traded compared to a prior open interest of 485, for a 95-fold surge in volume on the trade. The buyer of the calls paid $3.06 to get into the trade. Shares recently traded around $73, so they would need to rise about $12, or over 16 percent, for the option to move in-the-money. That would also still leave sh...

Shares of restaurant chainBloomin’ Brands (BLMN) have shed nearly one-third of their value in the past year. However, one trader sees the possibility for a rebound in the second half of the year. That’s based on the January 2023 $15 calls. With 241 days until expiration, 10,000 contracts traded compared to a prior open interest of 23, for a 43-fold rise in volume on the trade. The buyer of the calls paid $5.80 to get in. The stock recently traded just over $19, making this trade about $4.00 in-the-money, with only a tiny percentage of the call option representing time premium. And sh...

Shares of offshore drilling equipment companyTransocean (RIG) are up about 7 percent in the past year. One trader sees the potential for share to fall in the months ahead. That’s based on the May 2023 $3.00 puts. With 361 days until expiration, 10,032 contracts traded compared to a prior open interest of 352, for a 29-fold rise in volume on the trade. The buyer of the puts paid $0.60 to get into the trade. Shares recently traded for about $4.00, so they would need to decline about 25 percent in the space of a year for these put options to move in-the-money. Even with a surge in oi...