What’s Behind Puts in Home Depot

A large put trade tops today’s option activity in Home Depot.

optionMONSTER’s Depth Charge system detected the sale of 7,699 Weekly 79 puts that expire Friday for the bid price of $0.11 in volume below previous open interest of 7,773 contracts. At the same time, the trader bought the same number of the May Weekly 79 puts that expire five weeks later for $1.08. The previous open interest at that strike had been just 5 contracts, so that is clearly a new position.

This could be a calendar spread, which would take a maximum profit with HD right around $79 at expiration in mid-April. But the trader is more likely closing the near-term puts and rolling the position forward in time. If that is the case, it is probably a hedge against long shares.

Continue Reading at Option Monster

— Option Monster

You May Also Like

About the Author: Option Monster