A Rare Quant Signal Just Flashed for Contrarian Options Traders in Home Depot Stock

For steady, if not boring investments, you’ll be hard-pressed to find a better representative than Home Depot (HD). That’s not to cast aspersions on HD stock but let’s also be honest here — no one’s treating the ticker as the next big thing. It’s a dependable, low-beta security that historically doesn’t offer too many fireworks. That’s why its current position as a 72% Strong Sell might make it a contrarian target.

Since the start of the year, Home Depot stock is down almost 10%. In the trailing month, HD is on pace to lose 12%, which is quite remarkable. Understandably, the most persistent headwind recently has been the state of the economy — specifically the frozen housing market.