Looking At Home Depot's Recent Unusual Options Activity

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 positions 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.

Today, Benzinga's options scanner spotted 12 options trades for Home Depot.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 50%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $81,558, and 11, calls, for a total amount of $5,841,623.

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 $255.0 and $360.0 for Home Depot, spanning the last three months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for Home Depot options trades today is 1536.89 with a total volume of 1,860.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Home Depot's big money trades within a strike price range of $255.0 to $360.0 over the last 30 days.

Home Depot Option Volume And Open Interest Over 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.

Home Depot's Current Market Status

• Trading volume stands at 713,564, with HD's price down by -0.19%, positioned at $319.0.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 78 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 $331.8.

• Consistent in their evaluation, an analyst from Telsey Advisory Group keeps a Market Perform rating on Home Depot with a target price of $325.
• In a cautious move, an analyst from Oppenheimer downgraded its rating to Outperform, setting a price target of $360.
• Maintaining their stance, an analyst from Truist Securities continues to hold a Buy rating for Home Depot, targeting a price of $340.
• Consistent in their evaluation, an analyst from RBC Capital keeps a Sector Perform rating on Home Depot with a target price of $299.
• Consistent in their evaluation, an analyst from Morgan Stanley keeps a Overweight rating on Home Depot with a target price of $335.

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.