Pete Najarian has spotted unusual action in Home Depot.
Specifically, the Pit Boss spied a larger than unusual number of the November 39 strike calls trading, “more than 23,000 traded over the session,” he says.
Najarian takes the action to mean the stock could make a big move higher.
And the fundamentals may support that thesis. According to RBC Capital Markets analyst Scot Ciccarelli, gains in Lowe's stock after earnings may bode well for HD.
Although profits at Lowe’s dropped, the company also said, “Once home prices bottom out and employment starts moving in the right direction, there’s quite a bit of pent up demand.”
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Trader disclosure: On Nov 9, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Najarian is long AAPL; Najarian is long C; Najarian is long WFC; Najarian is long MS; Najarian is long INTC; Najarian is long YHOO; Najarian is long WFT calls; Najarian is long GE; Najarian is long GRPN; Adami Owns AGU; Adami Owns C; Adami Owns GS; Adami Owns INTC; Adami Owns MSFT; Adami Owns NUE; Adami Owns BTU; Terranova is long LQD; Terranova is long MUB; Terranova is long SU; Terranova is long HES; Terranova is long AXP; Terranova is long IBM; Terranova is long AAPL; Terranova is long EMC; Terranova is long SBUX; Terranova is long EF; Terranova is long TNQ; Terranova is long CAT; Grasso owns AA; Grasso owns AKS; Grasso owns ASTM; Grasso owns BA; Grasso owns BAC; Grasso owns D; Grasso owns KEG; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Nations is long SPY
For Steve Grasso
Stuart Frankel & Co and its partners own CSCO
Stuart Frankel & Co and its partners own CUBA
Stuart Frankel & Co and its partners own GERN
Stuart Frankel & Co and its partners own HPQ
Stuart Frankel & Co and its partners own HSPO
Stuart Frankel & Co and its partners own MET
Stuart Frankel & Co and its partners own MU
Stuart Frankel & Co and its partners own NYX
Stuart Frankel & Co and its partners own PRST
Stuart Frankel & Co and its partners own XRX
For Brian Kelly
Shelter Harbor is long STD
Shelter Harbor is short EUO
Shelter Harbor is long GLD
For Amelia Bourdeau
No disclosures
For Gordon Johnson
No disclosures
For Scot Ciccarelli
A member company of RBC Capital Markets or one of its affiliates managed or co-managed a public offering of securities for The Home Depot, Inc. in the past 12 months.
A member company of RBC Capital Markets or one of its affiliates received compensation for investment banking services from The Home Depot, Inc. in the past 12 months.
RBC Capital Markets is currently providing The Home Depot, Inc. with non-securities services.
RBC Capital Markets has provided The Home Depot, Inc. with investment banking services in the past 12 months.
RBC Capital Markets has provided The Home Depot, Inc. with non-securities services in the past 12 months.
For Patrick Mckeever
No disclosures
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