Shares of Wayfair Inc (NYSE:W) and RH (NYSE:RH) are reacting to President Donald Trump's tariff updates and inflation data that was in line with estimates. Specifically, the Trump administration announced a 50% levy on kitchen cabinets and bathroom vanities made abroad, as well as a 30% tariff on upholstered furniture.
W is up 0.9% to trade at $85.71 at last check, reversing premarket losses after snapping a three-day losing streak yesterday. The security sports a 92.3% year-to-date lead, and has been testing a floor at the $80 region since pulling back from a Sept. 11, three-year high of $91.77.
Short-term options traders already lean bearish on W. This is per the equity's Schaeffer's put/call open interest ratio (SOIR) that sits in the 86th percentile of readings from the past 12 months.
RH was last seen down 2.6% to trade at $205.80, on track for its third consecutive loss. The shares earlier gapped to their lowest level since August, and are looking to extend a 47.4% deficit for 2025, though familiar support at $200 looks positioned to contain losses.
Options bears are targeting RH today, with 5,973 puts traded so far -- double the volume typically seen at this point -- compared to 1,680 calls. Most popular contract is the weekly 9/26 190-strike put, where new positions are opening. This indicates traders expect more downside for RH by today's close, when these contracts expire.
