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One investor apparently believes that Home Depot is reversing after a big rally.

optionMONSTER's Depth Charge monitoring system detected the purchase of 20,000 June 49 puts for $0.85 and the sale of an equal number of June 50 calls for $0.60. Volume was more than twice open interest at both strikes.

The trade resulted in a cost of $0.25 and will make money from the home-improvement chain pushing below $48.75. The investor will be forced to sell shares above $50, so he or she is probably looking to hedge an existing position . (See our Education section)

HD is down 0.4 percent to $49.51 today. It rallied more than 60 percent between early October and early May as Americans resumed spending on their homes but then fell sharply and now appears to be rolling over at $50. Given that this level was support in April, some investors may think that it's now resistance and expect more downside.

The trade pushed total option volume to quadruple the daily average in HD so far today.

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