The Luxury Retailer's Gamble

RHS Options: A Look at What the Big Money is Thinking

April 25, 2023

The options market is a treasure trove of information for traders and investors. By analyzing the activity of big-money players, we can gain valuable insights into the market's direction and make more informed trading decisions.

Recently, one stock that has caught our attention is RH (NYSE: RHS). The luxury furniture and home decor retailer has been a hot topic among options traders, with big-money players showing significant interest in the stock's direction.

According to data from Benzinga Pro, the top 10 most traded RH options contracts over the past week have been concentrated in the calls, with the majority of the activity occurring in the May and June series. This suggests that many traders are betting on the stock's price to rise in the coming weeks.

One of the most notable trades in RH options is the large number of calls purchased by institutional investors. These savvy players have been buying up calls with strike prices ranging from $250 to $300, indicating a strong bullish bias.

The most traded RH options contract over the past week was the May 26 $280 call, with over 10,000 contracts traded. This suggests that many traders are looking for the stock to break out above the $280 level in the coming weeks.

Other notable trades in RH options include the purchase of calls by retail traders and the sale of puts by institutional investors. This suggests that many traders are looking for the stock to continue its upward trend, while others are looking to hedge their bets against a potential pullback.

Overall, the options market is suggesting that RH is a stock to watch in the coming weeks. With big-money players showing significant interest in the stock's direction, it's likely that RH will continue to be a hot topic among traders and investors.

As always, it's important to do your own research and due diligence before making any trading or investment decisions. The options market is a complex and ever-changing landscape, and it's important to stay informed and adapt to changing market conditions.