OptionsHouse

Options Trading News

March 3, 2014  Mon 10:56 AM CT

HD: SEE CHART GET CHAIN FIND STRATEGIES
Home Depot fell today, but traders apparently think that the home-improvement stock will hold its ground.

optionMONSTER's tracking systems show more than 7,500 of the April 79 puts have traded against open interest of just 60 contracts. The big block of 5,802 was sold for the bid price of $0.91.

The put seller is wagering the stock will remain above $79 through that April expiration. They take the risk of having to buy shares if they are below that strike and will keep the $0.91 premium as profit if remains above it. (See our Education section)

HD fell 0.79 percent to $81.38 in late morning trading. Shares hit an all-time intraday high of $83.10 on Friday, and are up from under $74 early last month.
Share this article with your friends


Related Stories

HD

Home Depot gets a vote of confidence

September 22, 2016

The home-improvement giant is down 6 percent in the last month, but one trader apparently believes that further declines will be limited.

OptionsHouse

Premium Services

Education & Strategy

Using spreads to minimize risk

Last week we discussed the risk vs reward profile of a debit call spread in Wells Fargo (WFC). This week we will run thru the risk vs reward of selling a credit put spread to achieve the same exposure of that debit call spread.

View more education articles »