Is the Options Market Predicting a Spike in Bath & Body Works (BBWI) Stock?

Group 1 - The stock of Bath & Body Works, Inc. (BBWI) is experiencing significant attention due to high implied volatility in the options market, particularly the Feb. 21, 2025 20 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in the stock's price, potentially due to an upcoming event [2] - Analysts have a positive outlook on Bath & Body Works, with the company holding a Zacks Rank 2 (Buy) in the Retail – Miscellaneous industry, which is in the top 10% of the Zacks Industry Rank [3] Group 2 - Over the past 60 days, three analysts have raised their earnings estimates for Bath & Body Works for the current quarter, resulting in an increase in the Zacks Consensus Estimate from 2.03 to $2.04 per share [3] - The high implied volatility may indicate a trading opportunity, as options traders often seek to sell premium on options with elevated implied volatility, aiming to benefit from time decay [4]