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Loss-making US company’s share price soars over 400% in a month – factors driving rally DECODED

Bed Bath & Beyond’s stock price is up more than 4x or 400% this month, according to a report by Zee Business. Bed Bath & Beyond, founded in 1971, is a loss-making US company and its shares are listed on NASDAQ (BBBY).

The counter jumped 6 times in a month, according to the report. The company’s stock price has gained more than $25 each over the past month. The stock has jumped almost 60% almost every week for the past month.

The 52-week range of Bed Bath & Beyond shares is $30.14 to $4.38.

The stock has become a major draw for retail investors after the company, in a filing, revealed activist investor Ryan Cohen’s latest bet. Explaining the real reason for the hype, Zee Business analyst Arman Nahar said that Cohen’s investment vehicle, RC Ventures, which is the company’s second largest investor and has added three independent directors to its board of directors, purchased call options expiring in January 2023 on 1.67 million. shares with a strike price ranging from $60 to $80.

Trading Bed Bath & Beyond, which holds around 51% of its public float short, triggered a short compression signal.

An option gives the buyer the right to buy or sell a security at a given price on a given date. Buying a call option is basically betting that the price of the underlying asset will rise.

Bed Bath & Beyond is a national merchandise retail chain. It was founded in 1971. The company operates 953 stores, including 771 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada.