Home Depot Unusual Options Activity

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 27 uncommon options trades for Home Depot.

This isn't normal.

The overall sentiment of these big-money traders is split between 25% bullish and 74%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $409,896, and 23 are calls, for a total amount of $1,281,042.

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 $260.0 to $335.0 for Home Depot over the last 3 months.

Insights into Volume & Open Interest

In today's trading context, the average open interest for options of Home Depot stands at 1753.75, with a total volume reaching 6,015.00. 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 $260.0 to $335.0, throughout the last 30 days.

Home Depot Option Activity Analysis: Last 30 Days

Significant Options Trades Detected:

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). Moreover, the additions of the Company Store brought textile exposure to the lineup, while Redi Carpet added multifamily flooring.

Following our analysis of the options activities associated with Home Depot, we pivot to a closer look at the company's own performance.

Home Depot's Current Market Status

• Currently trading with a volume of 1,178,837, the HD's price is down by -0.87%, now at $305.51.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 96 days.

Professional Analyst Ratings for Home Depot

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $314.6.

• An analyst from RBC Capital has decided to maintain their Sector Perform rating on Home Depot, which currently sits at a price target of $299.
• Maintaining their stance, an analyst from Stifel continues to hold a Hold rating for Home Depot, targeting a price of $306.
• An analyst from RBC Capital has revised its rating downward to Sector Perform, adjusting the price target to $303.
• An analyst from Telsey Advisory Group has revised its rating downward to Market Perform, adjusting the price target to $325.
• Maintaining their stance, an analyst from Guggenheim continues to hold a Buy rating for Home Depot, targeting a price of $340.

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.