Home Depot seen holding gains

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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 The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Options

Referenced Stocks: HD

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