Home Depot Unusual Options Activity For December 20

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 12 uncommon options trades for Home Depot.

This isn't normal.

The overall sentiment of these big-money traders is split between 58% bullish and 41%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $189,005, and 7 are calls, for a total amount of $381,969.

Expected Price Movements

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $135.0 to $415.0 for Home Depot during the past quarter.

Analyzing Volume & Open Interest

Looking at the volume and open interest is a powerful move while trading options. 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 trades within a strike price range from $135.0 to $415.0 in the last 30 days.

Home Depot 30-Day Option Volume & Interest Snapshot

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.

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.

Home Depot's Current Market Status

• Currently trading with a volume of 944,730, the HD's price is down by -0.3%, now at $351.0.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 62 days.

What The Experts Say On Home Depot

In the last month, 2 experts released ratings on this stock with an average target price of $355.5.

• Consistent in their evaluation, an analyst from Stifel keeps a Hold rating on Home Depot with a target price of $355.
• Maintaining their stance, an analyst from Truist Securities continues to hold a Buy rating for Home Depot, targeting a price of $356.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Home Depot options trades with real-time alerts from Benzinga Pro.