Residence Depot will report earnings on Tuesday, Aug. 16
Residence enchancment retailer Residence Depot Inc (NYSE:HD) is up 0.3% at $312.42 in afternoon buying and selling, simply forward of the blue chip’s second-quarter earnings report that is due earlier than the market opens Tuesday, Aug. 16. This is a more in-depth have a look at how HD has been performing within the lead as much as the occasion, and what the choices market is pricing in for the fairness’s post-earnings session.
Although the 20-day shifting common stepped in to assist Residence Depot inventory transfer up the charts in latest weeks, the safety continues to underperform the broader market with a 24.7% year-to-date deficit. Right now’s constructive worth motion was capped by the 150-day trendline late, because the fairness continues to battle a well-known closing ceiling on the $312 stage.
Diving into HD’s earnings historical past, the inventory has closed decrease the day after six of the corporate’s previous eight quarterly stories, together with an 8.9% dip in February. General, the shares have averaged a 3.5% swing the day after reporting, no matter route. This time round, Residence Depot choices merchants are pricing in a barely wider, 5.1% swing for Wednesday’s buying and selling.
choices, knowledge from the Worldwide Securities Alternate (ISE), Chicago Board Choices Alternate (CBOE), and NASDAQ OMX PHLX (PHLX) exhibits the fairness sports activities a 50-day put/name quantity ratio of that ranks within the 88th annual percentile. In different phrases, places have been bought over calls at a faster-than-usual clip of late.
Echoing this, the Residence Depot inventory’s Schaeffer’s put/name open curiosity ratio (SOIR) of 1.28 lands within the 81st percentile of its annual vary. This means that near-term choices merchants are extra put-biased than regular proper now.