Why RH Is Poised For Rally After Earnings Release

Why RH Is Poised For Rally After Earnings Release

RH RH is scheduled to report its quarterly results on Thursday after the bell.

On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that RH traded more than two times its average daily call volume on Wednesday. The options market is implying a move of around 9.5% after the company reports earnings, which is in-line with the 9% average over the past eight quarters, he added.

Check out other stocks making moves in the premarket.

There were buyers of 554 of the September 23 weekly 290-calls at an average price of $4.37 per contract, Khouw mentioned. Traders expect shares of RH to rally 15% over the next few weeks, he added.

RH Price Action: Shares of RH gained 5.88% to settle at $258.05 on Wednesday.

Photo via Shutterstock. 

Posted In: CNBCMichael KhouwOptimize AdvisorsLong IdeasPreviewsOptionsMarketsMediaTrading Ideas