AAL

Home Improvement Giant Readies for Earnings

The home improvement stock has a mixed post-earnings history

Deputy Editor
Aug 10, 2023 at 12:54 PM
facebook X logo linkedin


Home improvement retailer Home Depot Inc (NYSE:HD) is up 0.9% at $331.07 in afternoon trading, ahead of the blue chip's second-quarter earnings, due out before the market open on Tuesday, Aug. 15. Here's a closer look at how HD has been performing in the lead up to the event, and what the options market is pricing in for the equity's post-earnings session.

Since dipping a May 16, roughly six-month low of $277.09, HD managed a healthy rebound on the charts. The equity was guided higher by its 10-day moving average since late May, dipping below the trendline over the last four sessions. However, today's positive price action has Home Depot stock trading back above the trendline and 4.5% higher for 2023.

HD Chart August 102023

Diving into HD's earnings history, the stock has closed higher the day after four of the company's past eight quarterly reports, though it fell 7.1% and 2.2% after its last two respective earnings calls. Overall, the shares averaged a 4.4% swing the day after reporting, regardless of direction. This time around, Home Depot options traders are pricing in a similar 4.5% swing for Wednesday's trading.

Looking at options, data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows the equity sports a 50-day call/put volume ratio of 1.45 that ranks in the 92nd annual percentile. In other words, calls have been purchased over puts at a faster-than-usual clip of late.

 

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.