Short-term put sale in Home Depot


Home Depot is seeing short-term put selling as shares trade in the middle of their recent range.

optionMONSTER systems show that a trader sold 7,500 November Weekly 76 puts that expire at the end of Friday's session for $0.50. This is clearly a new position, as volume was far above the strike's previous open interest of just 921 contracts.

The put seller would keep the $0.50 credit as profit if HD holds above $76 through the end of the week. The trader may actually be hoping to buy shares on a pullback below that level, picking up the stock at an effective price of $75.50. (See our Education section)

HD is down fractionally to $76.17 in midday trading. The home-improvement giant has seen resistance at $77 since spending a day above $78 in mid-September. It was down near $74 last week.

More than 15,400 HD options have changed hands so far, well above its full-session average for the last month.

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