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 14 uncommon options trades for Home Depot.
This isn't normal.
The overall sentiment of these big-money traders is split between 28% bullish and 35%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $64,820, and 12 are calls, for a total amount of $1,265,002.
Projected Price Targets
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $300.0 to $520.0 for Home Depot during the past quarter.
Volume & Open Interest Trends
In today's trading context, the average open interest for options of Home Depot stands at 336.73, with a total volume reaching 525.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Home Depot, situated within the strike price corridor from $300.0 to $520.0, throughout the last 30 days.
Home Depot 30-Day Option Volume & Interest Snapshot
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| HD | CALL | SWEEP | BULLISH | 12/06/24 | $128.35 | $126.05 | $127.3 | $300.00 | $379.1K | 100 | 28 |
| HD | CALL | SWEEP | NEUTRAL | 12/06/24 | $128.35 | $126.05 | $127.33 | $300.00 | $267.3K | 100 | 72 |
| HD | CALL | TRADE | NEUTRAL | 12/06/24 | $128.35 | $126.05 | $127.32 | $300.00 | $165.5K | 100 | 85 |
| HD | CALL | SWEEP | BEARISH | 12/06/24 | $128.35 | $126.05 | $126.05 | $300.00 | $126.0K | 100 | 100 |
| HD | CALL | TRADE | NEUTRAL | 01/16/26 | $123.55 | $121.35 | $122.26 | $320.00 | $110.0K | 74 | 9 |
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 the recent tie-up with SRS will help grow professional demand in roofing, pool and landscaping projects.
Following our analysis of the options activities associated with Home Depot, we pivot to a closer look at the company's own performance.
Where Is Home Depot Standing Right Now?
- Trading volume stands at 870,976, with HD's price down by -0.47%, positioned at $427.13.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 78 days.
What The Experts Say On Home Depot
5 market experts have recently issued ratings for this stock, with a consensus target price of $439.8.
Unusual Options Activity Detected: Smart Money on the Move
Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * An analyst from Wells Fargo persists with their Overweight rating on Home Depot, maintaining a target price of $430. * Maintaining their stance, an analyst from B of A Securities continues to hold a Buy rating for Home Depot, targeting a price of $450. * Showing optimism, an analyst from Telsey Advisory Group upgrades its rating to Outperform with a revised price target of $455. * An analyst from Stifel persists with their Hold rating on Home Depot, maintaining a target price of $405. * Consistent in their evaluation, an analyst from Truist Securities keeps a Buy rating on Home Depot with a target price of $459.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
If you want to stay updated on the latest options trades for Home Depot, Benzinga Pro gives you real-time options trades alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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