GME) – Petco options traders bet epic short squeeze is in the cards – –

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GME) – Petco options traders bet epic short squeeze is in the cards – –


Petco Health and Wellness Company, Inc. (NASDAQ: WOOF) rose Monday afternoon. Earlier today, the company announced plans to make a presentation at the Evercore ISI Consumer & Retail Summit on Tuesday morning.
Traders and investors can bet the company has news to announce at the summit or that Petco could be the target of a retail-fueled short squeeze. There were also rumors that Reddit’s WallStreetBets community might be eyeing Petco.

The action has all the characteristics typical of other recent short squeeze targets such as Senseonics Holdings Inc. (NYSE: SENS) and GameStop Corporation (NYSE : GME) :

  • Strange ownership levels: Institutions and insiders own 130.95% of Petco’s free float, insiders own 75.90%, and institutions 55.05%.
  • High short interest: As of May 28, 19.8 million, or 35.87% of the total free float of 77.17 million of the share, is held short.

On Monday afternoon, shares of Petco began to contract and option traders piled up and bought dozens of call contracts worth well over $ 1.07 million.

See also: Stock Wars: Petco Vs. Mellow

Why this is important: When a sweep order occurs, it indicates that the trader wanted to take a position quickly and is anticipating a large and imminent move in the stock price. A sweeper pays the market price for the call option instead of placing a bid, which scans the order book of multiple exchanges to execute the order immediately.

These types of call option orders are typically placed through institutions, and retail investors may find it useful to watch the sweepers as this indicates that “smart money” has taken a position.

Les transactions d’options Petco : Below is an overview of the most notable option alerts, courtesy of Benzinga Pro:

  • At 1:54 p.m., a trader executed a call sweep near the demand for 200 Petco Health and Wellness options with a strike price of $ 30 expiring on September 17. The trade represented a bullish bet of $ 33,000 for which the trader paid $ 1.65 per option contract. .
  • At 2:01 p.m., a trader executed a call sweep near the request for 291 Petco Health and Wellness options with a strike price of $ 30 expiring on September 17. The trade represented a bullish bet of $ 65,475 for which the trader paid $ 2.25 per option contract. .
  • At 2:03 p.m., a trader executed a call sweep near the request for 359 Petco Health and Wellness options with a strike price of $ 30 expiring on December 17. The trade represented a bullish bet of $ 114,880 for which the trader paid $ 3.20 per option contract. .
  • At 2:07 p.m., a trader executed a call sweep near the call for 685 Petco Health and Wellness options with a strike price of $ 25 expiring September 17. The trade represented a bullish bet of $ 267,150 for which the trader paid $ 3.90 per option contract. .
  • At 2:47 p.m., a trader executed a call sweep near the request for 604 Petco Health and Wellness options with a strike price of $ 25 expiring on September 17. The trade represented a bullish bet of $ 302,000 for which the trader paid $ 5 per option contract. .
  • At 3:07 p.m., a trader executed a call sweep near the request for 233 Petco Health and Wellness options with a strike price of $ 25 expiring July 16. The trade represented a bullish bet of $ 92,734 for which the trader paid $ 3.98 per option contract.
  • At 3:12 p.m., a trader executed a call sweep near the request for 463 Petco Health and Wellness options with a strike price of $ 25 expiring on June 18. The trade represented a bullish bet of $ 124,084 for which the trader paid $ 2.68 per option contract.
  • At 3:19 p.m., a trader executed a call sweep near the demand for 200 Petco Health and Wellness options with a strike price of $ 35 expiring on December 17. The trade represented a bullish bet of $ 74,000 for which the trader paid $ 3.70 per option contract. .

WOOF price action: Shares of Petco were trading up 12% to $ 26.92 at the time of publication.

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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