There’s some interesting option activity today on $BBY with earnings before the open Thursday.
It looks like the May 23 Puts and the April 28 Calls are getting relatively devoured.
The May 23 Puts are getting sold for around $0.35 and the April 28 Calls are getting bought for around $0.75.
You can see from the 6 month chart why they’re playing the 23 Puts.
Looks like a bullish bet on the earnings, counting on an early pop. The vol will fade fast tommorrow and those 23 puts will probably expire worthless (unless it really tanks). The trader is trying to lower their 28 Call cost thinking they have little risk under 23 and a IV advantage before earnings.