Show of support for Home Depot
Chris McKhann | email@example.com
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.