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Newell Brands Seeing Notable Options Activity Ahead Of Earnings

Newell Brands Seeing Notable Options Activity Ahead Of Earnings
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Newell Brands Inc (NYSE: NWL) reports earnings Friday morning, and some options traders with deep pockets are making some big bets ahead of the report.

On Wednesday, Benzinga Pro highlighted several unusual options trades in Newell, including both bullish and bearish trades. Newell has had major options trading activity all month long, suggesting a volatile move could be coming at some point.

The screenshot below shows the particular trades that Benzinga Pro tagged as unusual. Keep in mind that calls traded at the bid and puts traded at the ask are typically considered to be bearish indicators, whereas calls traded at the ask and puts traded at the bid are bullish.

The contracts expiring this Friday are particularly noteworthy considering the earnings report is likely the only catalyst between now and expiration.

Early in the morning, one trader purchased 900 $26 weekly calls at the bid price. Two minutes later, another purchase of 500 $30 weekly puts at the bid came through.

Later in the afternoon, a massive trade of 4000 $27 weekly calls came through at the bid.

Options traders are typically seen as more sophisticated and advanced than the average stock trader. That generalization is particularly considered to be true when it comes to options traders who place extremely large orders. In other words, when somebody makes a huge bet in the options market that a stock is going to go up or down, stock traders take it seriously.

Of course, stock traders also use options bets as a way to hedge against their primary stock positions heading into a potential volatile catalyst such as an earnings report.

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Related Links:

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Image credit: Rubbermaid Products

Posted-In: Previews Options Top Stories Markets Trading Ideas Best of Benzinga


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