Notable Monday Option Activity: ALKS, BBWI, CVS

Bath & Body Works (BBWI) and CVS Health (CVS) experienced unusually high options trading volume, with activity for both representing approximately 59% of their respective average daily share volumes. Notably, long-dated put options, specifically the BBWI $23 strike expiring October 2025 and the CVS $72 strike expiring September 2025, saw significant trading, indicating potential increased bearish sentiment or hedging interest at these specific price levels over an extended horizon.

Analysis

Bath & Body Works (BBWI) and CVS Health (CVS) are both experiencing unusually high options market activity, with total options volume constituting a significant percentage of their average daily share volume—59% for BBWI and 58.6% for CVS. The activity is notably concentrated in long-dated put options, suggesting a strategic, rather than speculative, market sentiment. For BBWI, nearly half of the day's 36,452 options contracts were in the October 2025 $23 strike put, indicating a substantial bet or hedge against the stock falling below this level over the next year. Similarly, CVS saw a notable portion of its 35,504 contracts traded in the September 2025 $72 strike put. This pattern across both stocks points towards either a coordinated hedging strategy by institutional investors to protect long positions or a growing, long-term bearish conviction on the stocks' future performance.

Key Decisions for Investors

• Investors should recognize the elevated options volume in BBWI and CVS, particularly in long-dated puts, as a potential leading indicator of increased perceived downside risk or significant institutional hedging.
• For BBWI, the $23 strike price for the October 2025 expiration has been established as a critical level of interest, and price action relative to this strike should be monitored closely for signs of support or resistance.