Learn the trade here. Make it on tradeMONSTER

Options Trading News

January 31, 2013  Thu 4:45 AM CT

HD: SEE CHART GET CHAIN FIND STRATEGIES
Home Depot is at its highest levels in more than a decade, and traders remain firmly bullish.

More than 3,300 March 65 calls changed hands in a strong buying pattern yesterday, with the largest blocks going for $3.05, according to optionMONSTER's Heat Seeker tracking system. The volume was 3 times higher than the strike's open interest of 1,104 contracts at the beginning of the day, indicating that this is new positioning.

Our scanners also show that a block of 1,000 March 67.50 puts was sold for $2.82 in volume that was above the previous open interest at that strike. This put selling does not appear related to the March 65 call buying, but both are positive on the stock.

The long calls are looking for HD to rise above $68.05, while the short puts are betting that it will be higher than $67.50 through expiration in mid-March. (See our Education section)

HD was up fractionally yesterday at $67.24 after hitting $68.15 on Monday, its highest intraday price since April 2000. The home-improvement retailer is scheduled to report fourth-quarter earnings on Feb. 26.

Total option volume in the name exceeded 12,000 contracts yesterday, 33 percent more than its daily average in the last month.
Share this article with your friends


Related Stories

HD

Trade sees Home Depot holding up

October 3, 2014

A large trade is betting that shares of the home-improvement retailer will hold current levels for the next two weeks.

Premium Services

Free Webinars

Make Money in a Volatile Market

Education & Strategy

Vexed by the VIX

Many people probably don't know that the calculation changed for the CBOE Volatility Index this week, but it's worth discussing...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER