Unusual trade in Home Depot (HD) after 16,000 March 37 puts are bought on the home improvement retailer for 6 cents per contract on PHLX. Looks opening. 16,192 traded against 739 in open interest. Another 16,083 Mar 38 puts traded on the stock. Total volume is 47,000 puts and 7,700 calls, yet levels of implied volatility are down 3 percent to 17.5. Still, the interest in deep OTM puts in HD is noteworthy as Microsoft has seen similar action today (see 10:59 color).
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.