Bed Bath & Beyond Inc. (Nasdaq: BBBY) is slated to report fiscal third-quarter earnings before the open on Thursday, Jan. 6 -- one of the first big corporate reports due out in 2022. Below, we'll dive deeper into BBBY's earnings history, and what the options market is pricing in ahead of the event.  

Things started off strong in 2021, as the security skyrocketed to a five-year high of $53.90. However, by July, Bed Bath & Beyond stock was struggling with a ceiling at the 160-day moving average, while more recently the $16 level has kept a lid on gains -- even after a major partnership in November put some wind at the security's sails. And with resistance from all noteworthy trendlines on the chart, it's no surprise that BBBY is set to log a roughly 15% year-to-date deficit.

Looking back, the stock has finished lower after earnings five times out of eight during the past two years. This includes a 22.2% fall in September and a 12.2% dip in April. The security averaged a 17.9% next-day move, regardless of direction, during this time period. This time around, the options pits are pricing in a massive 28.9% shift.

Analyst sentiment shows the majority of analysts are skeptical on BBBY, with 12 out of 13 in coverage rating it a “hold” or worse. Meanwhile, the consensus 12-month target price of $19.14 is a 28% premium to the stock’s current levels.

Short sellers are moving in as well. Short interest rose 11% in the most recent reporting period, and the 21.42 million shares sold short make up a hefty 21.6% of the stock's available float, or more than two days worth of pent-up buying power. 

In the options pits, BBBY sports 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that sits higher than 73% of all other readings from the past 12 months. This suggests the appetite for puts has been healthier than usual over the last two weeks.