Put Traders Respond to Big Lots' Q1 Loss

The shares opened at their lowest level in more than 30 years

Deputy Editor
May 26, 2023 at 10:28 AM
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Shares of Big Lots, Inc. (NYSE:BIG) have already hit a more than three-decade low of $5.67 in this morning's trading, last seen down 17%, after the company recorded disappointing first-quarter results and suspended its dividend. The discount retailer posted adjusted losses of $3.40 per share, nearly double estimates, and lower-than-expected revenue. What's more, Big Lots expects its second-quarter same-store sales to fall more than previous forecasts.

Put traders are blast BG following the results. The equity's normally quiet options pits have already seen 2,071 bearish bets traded, or 14 times the intraday average. Call traders are active too, however, with bullish volume running at six times the amount typically seen at this point. Most popular is the June 5 put. 

The equity is now on track for its worst daily percentage drop since April, heading for its sixth daily loss in seven sessions. What's more, Big Lots stock is pacing for its for its seventh weekly loss in eight, as well as its fourth consecutive losing month. In the last 12 months, BG has shed 80.8%.

Now on the short sales restricted (SSR) list, the 10.64 million shares sold short account for 38.1% of the security's available float. Meanwhile, all nine covering analysts rate the stock a "hold" or worse.


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