Investors with a lot of money to spend have taken a bearish 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 10 uncommon options trades for Home Depot.
This isn't normal.
The overall sentiment of these big-money traders is split between 30% bullish and 60%, bearish.
Out of all of the special options we uncovered, 4 are puts, for a total amount of $255,350, and 6 are calls, for a total amount of $267,616.
Projected Price Targets
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $330.0 to $385.0 for Home Depot over the last 3 months.
Analyzing Volume & Open Interest
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for Home Depot's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Home Depot's whale activity within a strike price range from $330.0 to $385.0 in the last 30 days.
Home Depot Call and Put Volume: 30-Day Overview
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| HD | PUT | SWEEP | BEARISH | 09/13/24 | $1.75 | $1.72 | $1.75 | $360.00 | $102.7K | 198 | 845 |
| HD | CALL | SWEEP | BEARISH | 10/18/24 | $14.4 | $14.05 | $14.1 | $360.00 | $70.5K | 366 | 59 |
| HD | PUT | SWEEP | BEARISH | 09/13/24 | $1.7 | $1.69 | $1.7 | $360.00 | $69.3K | 198 | 1.3K |
| HD | CALL | TRADE | BULLISH | 10/11/24 | $2.5 | $2.3 | $2.5 | $385.00 | $57.0K | 8 | 229 |
| HD | CALL | SWEEP | BEARISH | 09/20/24 | $6.85 | $6.8 | $6.8 | $362.50 | $42.8K | 101 | 91 |
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 US, 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 Interline Brands in 2015 allowed Home Depot to enter the MRO business, which has been expanded through the tie-up with HD Supply (2020). The additions of the Company Store brought textiles to the lineup, and Redi Carpet added multifamily flooring, while the recent tie-up with SRS will help grow professional demand.
After a thorough review of the options trading surrounding Home Depot, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Present Market Standing of Home Depot
- With a trading volume of 1,137,501, the price of HD is up by 1.07%, reaching $363.9.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 64 days from now.
What Analysts Are Saying About Home Depot
5 market experts have recently issued ratings for this stock, with a consensus target price of $389.0.
- Maintaining their stance, an analyst from Evercore ISI Group continues to hold a Outperform rating for Home Depot, targeting a price of $400.
- 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.
- An analyst from Loop Capital persists with their Hold rating on Home Depot, maintaining a target price of $330.
- Consistent in their evaluation, an analyst from DA Davidson keeps a Buy rating on Home Depot with a target price of $430.
- Consistent in their evaluation, an analyst from UBS keeps a Buy rating on Home Depot with a target price of $425.
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.
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