What the Options Market Tells Us About Home Depot

Investors with a lot of money to spend have taken a bullish stance on Home Depot HD.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with HD, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 11 uncommon options trades for Home Depot.

This isn't normal.

The overall sentiment of these big-money traders is split between 63% bullish and 36%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $68,975, and 9 are calls, for a total amount of $469,468.

Projected Price Targets

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $280.0 and $335.0 for Home Depot, spanning the last three months.

Analyzing Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Home Depot's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Home Depot's significant trades, within a strike price range of $280.0 to $335.0, over the past month.

Home Depot Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

About Home Depot

Home Depot is the world's largest home improvement specialty retailer, operating more than 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the United States, Canada, and Mexico. Its stores offer numerous building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations business, which has been expanded through the tie-up with HD Supply (2020). The additions of the Company Store brought textile exposure to the lineup, while Redi Carpet added multifamily flooring.

Home Depot's Current Market Status

• Trading volume stands at 1,115,505, with HD's price up by 0.28%, positioned at $333.5.
• RSI indicators show the stock to be is currently neutral between overbought and oversold.
• Earnings announcement expected in 63 days.

Professional Analyst Ratings for Home Depot

In the last month, 5 experts released ratings on this stock with an average target price of $374.8.

• Maintaining their stance, an analyst from Evercore ISI Group continues to hold a Outperform rating for Home Depot, targeting a price of $390.
• Maintaining their stance, an analyst from HSBC continues to hold a Reduce rating for Home Depot, targeting a price of $318.
• Maintaining their stance, an analyst from Truist Securities continues to hold a Buy rating for Home Depot, targeting a price of $406.
• An analyst from Telsey Advisory Group has decided to maintain their Market Perform rating on Home Depot, which currently sits at a price target of $360.
• Maintaining their stance, an analyst from UBS continues to hold a Buy rating for Home Depot, targeting a price of $400.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Home Depot with Benzinga Pro for real-time alerts.