Learn the trade here. Make it on tradeMONSTER

Options Trading News

October 24, 2013  Thu 11:17 AM CT

HD: SEE CHART GET CHAIN FIND STRATEGIES
An extremely short-term bet is looking for Home Depot to hold current levels through the end of this week.

optionMONSTER systems show that a trader sold a block of 3,000 Weekly 76 puts that expire tomorrow afternoon for $0.19, below the listed bid price at the time. The volume was more than 10 times the previous open interest, so this was a new opening position.

If today's gains hold up by tomorrow's close, the put seller would get to keep that $0.19 credit as profit. He or she also takes on the risk of having to buy shares if they are below the $76 strike price, but that actually may be part of the plan because some traders use at-the-money short puts to acquire long positions at a discount. (See our Education section)

HD is up 2.09 percent to $76.65 this morning. They were down near $74 at Monday's low.
Share this article with your friends


Related Stories

HD

Cramer: Odd action in retail stocks

November 19, 2014

Stocks that rise before earnings often trade down when they report, even if the numbers are good. This is not news, but yesterday it seemed to mystify investors.

Premium Services

Webinar Playback

eSignal "Back in Black": Multi-Speaker Free Webinar

Education & Strategy

Some things aren't what they seem

As we scan the Heat Seeker, Depth Charge, and other option-tracking systems, we sometimes see heavy activity in calls and...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER