Calumet Specialty Products Partners LP (CLMT) faced a significant sell-off on Tuesday, with its stock plummeting 16.79% amid heavy bearish options trading activity and an analyst price target downgrade.
The options market saw a surge in bearish bets against CLMT, with put options trading at 7 times the expected level. The most actively traded contracts were the February 2025 $16 and $12 put options, suggesting traders were positioning for further downside in the stock.
Additionally, UBS lowered its price target on CLMT from $24 to $20.50, while maintaining a Neutral rating on the stock. Despite the overall "Overweight" rating from analysts tracked by FactSet, with an average price target of $26.80, the downgrade likely added to the selling pressure on the stock.
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