Home Depot continues its trek into record territory, and the bulls are going along for the ride.
optionMONSTER's Heat Seeker monitoring program detected buying in the short-term Weekly calls expiring this Friday, Nov. 27. The 134s, for instance, traded early for $0.30 and the 135s fetched $0.20. Both quickly doubled as the home-improvement chain nudged higher.
Long calls lock in the price where shares can be purchased, so they generate leverage from relatively small moves in the underlying stock. Investors use them to manage risk and to make sure they don't miss rallies. (See our Coaching section)
HD is up 0.68 percent to $133.40 in afternoon trading and has risen about 10 percent since Nov. 16. The surge followed a better-than-expected earnings report, with management raising guidance for the second straight quarter.
Overall option volume is triple the average amount in HD so far today, with calls accounting for a bullish 65 percent of the total.
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