Home Depot seen holding gains

By David Russell,

Shutterstock photo

Home Depot is up sharply on strong quarterly numbers today, and traders apparently believe that those gains will stick.

optionMONSTER systems show that a block of 7,323 December 80 puts was sold for $1.28, below the listed bid price at that time. This is clearly a new position, as the volume was well above the strike's previous open interest of just 1,061 contracts.

The put selling is a bet that HD will hold above $80 in next month. The trader takes on the risk of having to buy shares if they fall below that strike price. (See our Education section)

HD is up 1.97 percent to $81.24. The home-improvement retailer shot up to $82.27 this morning, a new all-time high for the stock--after better-than-expected earnings.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Options
Referenced Stocks: HD

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