Unusual Options Activity in The Kroger Co. (KR), Snap Inc. (SNAP), and Ruth's Hospitality Group, Inc. (RUTH)

Unusual Options Activity in The Kroger Co. (KR), Snap Inc. (SNAP), and Ruth's Hospitality Group, Inc. (RUTH)
RUTH’s daily price, in blue, there was a high of 6,125 call volume, which surpassed the regional call volume of 4,540 on August 9th, 2021.

Unusual Options Activity in The Kroger Co. (KR)

Yesterday, among the underlying components of the NYSE, we saw unusual or noteworthy options trading volume and activity in The Kroger Co. (KR), which opened at $46.75.

There were a total of 5,500 contracts traded on the $46 strike put option at the bid, dated for September 10th, 2021, representing approximately 550,000 shares.

There was an additional order of 4,000 contracts traded on the $46.5 strike call option at the bid, for the same date, representing an additional 400,000 shares.

Approximately six minutes after these orders, there were another 5,500 contracts traded again on the $46 strike put option for the same date, representing another 550,000 shares.

These orders come just ahead of Kroger Co.’s earnings to be reported on September 10th, 2021 before the market opens.  In addition, Kroger has a meaningful debt burden; however, some analysts speculate how significant or dangerous this is to the company’s future.

Unusual options orders on KR.

Seen above are the noteworthy options orders on Kroger Co., representing a total of 15,000 contracts, or 1,500,000 shares.

Seen above are Kroger Co.’s options chain breakdowns of at least $1000 premium, with a breakdown by expiry highlighted on the left and by strike on the right.  As seen, the September 17th, 2021 expiration is now the most active chain, with $30,712,042 bullish premium traded, dated for just after Kroger Co.’s upcoming earnings announcement.

Unusual Options Activity in Snap Inc. (SNAP)

Again on the NYSE, we saw unusual or noteworthy options trading volume and activity in Snap Inc. (SNAP), which opened at $75.83.

There were a total of 36,565 contracts traded on the $88 strike call option at the bid, dated for September 24th, 2021, representing approximately 3,656,500 shares.

There was an additional order of 36,050 contracts traded on the $88 strike call option also at the bid, for the same date, representing an additional 3,650,500 shares.  These orders come after Snap Inc. had rallied 48% since the start of 2021, and now with speculation that it will begin to slow based on new offerings.

SNAP's price in blue, call volume in green, put volume in red, and open interest in yellow.

Per the chart above, representing SNAP’s daily price, in blue, there was a high of 108,168 call volume, seen in green.  Earlier this year, seen in the middle of the chart, on July 23rd, 2021, SNAP’s call volume had reached a high of 591,385.

SNAP’s average 30 day call volume is 132,000, with a put-call ratio of 1.03.  Call volume amounts to 63% of total volume, with put volume at 37%; however, bullish premium amounts to 51.7% compared to bearish at 48.3%.

Unusual Options Activity in Ruth's Hospitality Group, Inc. (RUTH)

In the market capitalization-weighted index NASDAQ Global Select Market Composite (NasdaqGS), we saw unusual or noteworthy options trading volume and activity in Ruth's Hospitality Group, Inc. (RUTH), which opened today at $20.22.

There were a total of 2,000 contracts traded on the $22.5 strike call option at the ask, dated for November 19th, 2021, representing approximately 200,000 shares.

There was an additional order of 2,000 contracts traded on the $25 strike call option at the bid, for the same date, representing an additional 200,000 shares.

Finally, there were another 2,000 contracts traded on the $17.5 strike put option for the same date, at the bid, representing another 200,000 shares.

If these orders were entered together without considering any common shares owned or shorted, these orders represent a call debit spread with a short put collar, with 13.6% expected maximum return on risk, 29.6% probability of profit, and a maximum return of $480,000.  These orders come after Ruth’s Hospitality Group was reported to have potential issues allocating its capital.

RUTH's price in blue, call volume in green, put volume in red, and open interest in yellow.

Per the chart above, representing RUTH’s daily price, in blue, there was a high of 6,125 call volume, which surpassed the regional call volume of 4,540 on August 9th, 2021.  Put volumes are seen in red, which have also increased to 2,000 and open interest was at 8,649 as of market close Friday, September 3rd.

RUTH’s average 30 day call volume is 325, meaning yesterday's volume of 6,125 represents a 1884% increase from the mean.

For further information on the unusual options activity of KR, SNAP, and RUTH, visit unusualwhales.com.