Bed Bath & Beyond 402% Rally Is Supercharged by Retail Money

  • Individuals bought $73 million of the stock on Tuesday: Vanda
  • Derivatives betting on further gains were the most active
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Bed Bath & Beyond Inc.’s spectacular rally is drawing in a record hoard of cash from retail investors, who are pumping their bets on popular social media websites and trader chatrooms.

Retail traders bought an all-time high of $73.2 million of the stock on Tuesday, bringing their total net purchases in three weeks to $171.4 million, according to data compiled by Vanda Research. What’s more, the most actively traded derivative for the stock is betting on it to nearly double from Wednesday’s close to $45 by the end of the week, Bloomberg data show.