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October 19, 2016  Wed 6:14 AM CT

Traders are betting that Home Depot will hold firm through its next earnings report.

optionMONSTER's monitoring systems shows that 3,385 Weekly 122 puts expiring on Nov. 25 were sold at the same time for $1.95 to $2 yesterday. This is clearly a new position, as open interest in the strike was a mere 12 contracts before the trade appeared.

Short puts lock in a price where investors must buy a stock, while letting them collect premium. Traders use the technique when they like a stock and think that the risk of a big drop is limited. (See our Education section)

HD rose 0.48 percent to $125.74 yesterday but is down 9 percent in the last three months.The home-improvement giant is scheduled to release quarterly numbers in pre-market hours on Nov. 15.

Overall option volume was about average in HD yesterday.

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