BBWIBath & Body Works, Inc.
Options Analysis Report•RETAIL-RETAIL STORES, NEC
Market Cap $3.6B|NYSE
● 2026-05-15$17.95
NEUTRAL
Analysis: 2026-05-14 EOD data
1Y -47.2%YTD -13.5%7D -9.0%
Options Vol
1,866
30D
Implied Move
±23.6%
IV Rank
45%
BBWI Options Overview
IV is elevated. Conditions favor premium sellers.
REWARDS
RISK ANALYSIS
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Value
Is IV priced right?
3.1
ExpensiveCheap
Measures whether options are cheap, fair, or rich relative to historical and peer
IV
levels.Risk Checks3/9 checks passed
IV Rank
≤35%IV Rank 84.0% — elevated vs history
IV/HV Ratio
<1.05xIV/HV 1.28x — IV premium over HV
Sector Relative≤50%
Sector percentile 91% — above sector median
Term Structure
<1.1xFront/Back 1.05x — backwardation
Skew Normal
<1.25xPut/Call IV 1.16x — elevated
Absolute IV
<80%ATM IV 77.7% — normal range
Spread-Adjusted Value
<80%Effective IV 102.0% (ATM 77.7% + spread 12.2% + bias) — expensive
Execution Efficiency
<3.0%Total drag 17.52% (spread 12.16% + slippage 5.36%) — high friction
Vega Efficiency
≥5.0Vega efficiency 2.01 (vega 2.442 / spread 12.16%) — spread drag
Sentiment
Bullish or bearish?
3.9
BearishBullish
Analyzes
put/call ratios
, open interest skew
, and flow direction to determine market bias.Risk ChecksVery Bearish - Strong signal (Conviction: -39%, Raw: -30%)
Flow Direction
|net sentiment| ≥25%Conviction-weighted: -39% (strong bearish) — Raw: -30%
OI Skew Magnitude
≥15%|OI skew| 15.0% — call-heavy
Volume-OI Alignment
Same sign, |vol skew| ≥10%Vol skew -10.9%, OI skew +15.0% — divergent (opposite)
Conviction Quality
≥2/3 conditions0-DTE 23%, far-OTM 15%, avg DTE 30
OI Momentum
|change| ≥3%OI change +0.0% (5d) — stable
Smart Money Flow
|weighted flow| ≥20%ITM: -72%, ATM: -11%, OTM: -29% — strong bearish (ITM/ATM aligned)
Sector Relative≤40% or ≥60%
Sector P/C percentile 80% — very bearish vs sector
Activity
Unusual activity?
3.8
QuietActive
Detects volume surges,
block trades
, and unusual options activity that may signal moves.Risk Checks2/9 checks passed
Volume Surge
≥1.5xVolume 0.6x avg — normal
Turnover Rate
≥15%Vol/OI 3.9% — normal turnover
Strike Concentration
≥60%Top 3 strikes = 50% — dispersed
Multi-Day Persistence
≥2 days1 day(s) elevated — may be one-day event
OI Build
≥5%OI change +3.7% (5d) — building
Sector Relative≥60%
Sector activity percentile 61% — active vs sector
Trade Quality
≥30%Large trade volume 16% — mixed
Execution Urgency
≥60%Aggressive execution 38% — patient
Flow Conviction
≥30Conviction -39 (bearish) — moderate
Liquidity
Can I trade efficiently?
3.3
IlliquidLiquid
Evaluates
bid-ask spreads
, volume depth, and open interest for trade execution quality.Risk Checks3/8 checks passed
Tradeable Spread
≤5.0%Spread 12.2% — wide
Adequate OI
≥10,000OI 48,176 — adequate
Active Volume
≥500Volume 1,866/day — adequate
Reasonable Cost
≤$0.50$0.61 to cross — expensive
Strike Coverage
≥5 strikes0 liquid strikes — limited options
Sector Relative≤40%
Sector spread percentile 95% — much wider than sector
Order Book Depth
≥100 contractsDepth 580.0 contracts (bid:275.0 ask:305.0) — deep
Execution Quality
<1.0%Avg slippage 5.36% — poor
Timing
Is now a good time?
7.4
RiskyFavorable
Considers earnings proximity,
time decay
, and event calendar for optimal entry timing.Risk Checks8/9 checks passed
Term Structure Clarity
|slope| ≥5%Slope +5.2% — backwardation
IV Percentile Clarity
<30 or >70IV percentile 84% — seller opportunity
Event Detection
≥10pts kinkIV kink -0.2pts — no clear event
Theta/Vega Clarity
<0.5 or >2.0θ/ν ratio 134.20 — favors income trades
Expiration Distribution
≥3 expirations5 liquid expirations — flexible
Event Risk
≥60% (safe)acceptable: Earnings in 12d
Spread Momentum
<1.2 ratioSpread ratio 1.00x — stable
Flow Momentum
≥25% strength + ≥50% consistencyFlow -39% @ 70% consistency — moderate (bearish)
Smart Money Timing
≥40 composite scoreScore 46 (ITM 20% + inst 16%) — moderate institutional
Directional Strategy Fit
Option Buyers
Long Calls4.0
bullishIV expensive, bearish flow
Long Puts4.8
bearishIV expensive, bearish flow
Premium Sellers
Cash-Secured Put5.2
bullishIV rich premium, bearish flow
Covered Call6.0
bearishIV rich premium, bearish flow
For educational purposes only. Not investment advice.