Deep-pocketed investors have adopted a bearish approach towards RH RH, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in RH usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 79 extraordinary options activities for RH. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 27% leaning bullish and 40% bearish. Among these notable options, 29 are puts, totaling $1,348,035, and 50 are calls, amounting to $7,143,684.
Expected Price Movements
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $250.0 to $430.0 for RH during the past quarter.
Volume & Open Interest Trends
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for RH's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across RH's significant trades, within a strike price range of $250.0 to $430.0, over the past month.
RH 30-Day Option Volume & Interest Snapshot
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| RH | CALL | TRADE | BULLISH | 10/18/24 | $12.8 | $12.4 | $12.7 | $360.00 | $3.1M | 188 | 28 |
| RH | PUT | SWEEP | BULLISH | 01/17/25 | $40.3 | $40.2 | $40.2 | $340.00 | $241.2K | 48 | 62 |
| RH | CALL | SWEEP | BEARISH | 01/17/25 | $21.4 | $21.0 | $21.0 | $400.00 | $174.6K | 728 | 244 |
| RH | CALL | SWEEP | BEARISH | 01/17/25 | $22.7 | $22.5 | $22.58 | $400.00 | $99.0K | 728 | 97 |
| RH | PUT | SWEEP | BEARISH | 09/20/24 | $7.7 | $7.7 | $7.7 | $330.00 | $77.0K | 23 | 745 |
About RH
RH is a luxury retailer operating in the $134 billion domestic furniture and home furnishing industry. The firm offers merchandise across many categories including furniture, lighting, textiles, bath, decor, children, and is growing the presence of its hospitality business (with 17 restaurant locations). RH innovates, curates, and integrates products, categories, services, and businesses across channels and brand extensions (RH Modern and Waterworks, for example). RH is fully integrated across channels, and is positioned to broaden its total addressable market over the next decade by expanding abroad, and with its World of RH digital platform (highlighting offerings outside of home furnishings), along with future offerings in color, bespoke furniture, architeture, media, and more.
After a thorough review of the options trading surrounding RH, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
RH's Current Market Status
- With a trading volume of 1,450,635, the price of RH is up by 3.94%, reaching $334.55.
- Current RSI values indicate that the stock is may be overbought.
- Next earnings report is scheduled for 80 days from now.
What The Experts Say On RH
A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $326.6.
- Maintaining their stance, an analyst from Stifel continues to hold a Buy rating for RH, targeting a price of $375.
- An analyst from Barclays has decided to maintain their Equal-Weight rating on RH, which currently sits at a price target of $320.
- Consistent in their evaluation, an analyst from Wedbush keeps a Neutral rating on RH with a target price of $310.
- An analyst from JP Morgan has decided to maintain their Overweight rating on RH, which currently sits at a price target of $338.
- An analyst from Telsey Advisory Group persists with their Market Perform rating on RH, maintaining a target price of $290.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for RH with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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