Spotlight on RH: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bearish stance on RH RH.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with RH, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 9 uncommon options trades for RH.

This isn't normal.

The overall sentiment of these big-money traders is split between 33% bullish and 66%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $569,250, and 4 are calls, for a total amount of $147,355.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $260.0 and $500.0 for RH, spanning the last three months.

Insights into Volume & Open Interest

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for RH's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of RH's whale trades within a strike price range from $260.0 to $500.0 in the last 30 days.

RH Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

About RH

RH is a luxury retailer operating in the $143 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 15 restaurant locations). RH innovates, curates, and integrates products, categories, services, and businesses across channels and brand extensions (RH Teen, RH Modern, and Waterworks, for example). RH is fully integrated across store, Web, and catalog channels, and is positioned to broaden its total addressable market over the next decade 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.

In light of the recent options history for RH, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Current Position of RH

• With a trading volume of 458,083, the price of RH is down by -6.44%, reaching $270.1.
• Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
• Next earnings report is scheduled for 43 days from now.

What Analysts Are Saying About 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 $311.0.

• An analyst from Baird has decided to maintain their Neutral rating on RH, which currently sits at a price target of $300.
• An analyst from Wedbush has revised its rating downward to Neutral, adjusting the price target to $275.
• Consistent in their evaluation, an analyst from Telsey Advisory Group keeps a Market Perform rating on RH with a target price of $335.
• Consistent in their evaluation, an analyst from Wells Fargo keeps a Overweight rating on RH with a target price of $360.
• Reflecting concerns, an analyst from Telsey Advisory Group lowers its rating to Market Perform with a new price target of $285.

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.