Unusual Options Activity in Campbell’s Stock Is a Big Warning on Bearish Investor Sentiment

Campbell Soup Company (CPB) reported its Q4 2026 results on Thursday before the markets opened, but shares were down more than 10%, signaling bearish investor sentiment. The stock has fallen over 25% year-to-date, 34% in the past 52 weeks, and 54% over the past five years, making it down 67% from its July 2016 all-time high of $67.89. After Nvidia's earnings pop, options traders targeted $260, focusing on CPB's options activity.

Options volume for CPB was unusually high at 48,701, six times the 30-day average. Puts outnumbered calls 35,585 to 14,116, with three options meeting the criteria for unusual activity. Institutions have exploited this bearish sentiment, with one institution benefiting by implementing a 1x2 Put Ratio Spread strategy.

The trade involved buying 5,000 $22.50 puts for $185,000 and selling 10,000 $21 puts for $50,000, resulting in a net debit of $135,000. If the stock price at expiration is $21, the trade generates a maximum profit of $615,000, a 455.6% return or 10,393.4% annualized. However, the maximum loss is unlimited, occurring if the share price exceeds $22.50 at expiration, making the trade a bearish bet with a breakeven share price of $19.77.