RH reported better-than-expected second-quarter results
Shares of RH (NYSE:RH), formerly known as Restoration Hardware, are soaring today, up 19.2% at $305.72 at last glance, after the company's better-than-expected second-quarter earnings and revenue. According to the equity, demand for the furniture retailer's products rose 7% in the quarter, with CEO Gary Friedman how well-positioned it is for a housing-market rebound.
On the charts, RH is gapping to its highest levels since April as it heads for its largest single-day percentage gain since Sept. 2020. Today's pop also has the equity breaking into positive territory for the year, now up 5.3% year to date.
RH's options pits are exploding after the event. So far, 25,000 calls and 17,000 puts have crossed the tape, which is already 11 times the stock's average daily options volume. The January 2025 240-strike call is the most popular, followed by today's weekly 9/13 320-strike call, with new positions opening at the latter.
This also represents a sentiment shift, as puts were more popular than usual coming into today. This is per RH's 10-day put/call volume ratio of 1.19 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 94% of readings from the past year.