Paper bought the HD June 155-160 call spread for 1.36.?
Home Depot Inc., trading 155.35 (down 1.12) with an IV30 of 13.30 and an HV10 of 10.85, saw a large call spread trade today.? The stock, with an ADV of 25,500 and OI of 443,000 contracts, saw a customer buy 12,000 of the June 155 calls for 1.70 and against it sold 12,000 June 160 calls at .34.? Net, the trader bought the June 155-160 call spread for 1.36.? This was executed untied.
This appears to be a trader that is making a bet that HD is going to move 2-3% higher over the next few weeks to above 160 dollars a share.? The customer has a break even at expiration of 156.34 about where the stock closed yeaterday.
This trade is bullish HD and mildly bullish volatility.