Unpacking the Latest Options Trading Trends in Home Depot

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 17 uncommon options trades for Home Depot.

This isn't normal.

The overall sentiment of these big-money traders is split between 52% bullish and 47%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $357,000, and 13 are calls, for a total amount of $1,329,054.

Projected Price Targets

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $250.0 to $460.0 for Home Depot over the recent three months.

Insights into 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 $250.0 to $460.0 in the last 30 days.

Home Depot Call and Put Volume: 30-Day Overview

Largest Options Trades Observed:

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.

Current Position of Home Depot

• Currently trading with a volume of 1,755,072, the HD's price is down by -0.16%, now at $370.94.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 63 days.

What Analysts Are Saying About Home Depot

In the last month, 5 experts released ratings on this stock with an average target price of $401.8.

• An analyst from Wells Fargo persists with their Overweight rating on Home Depot, maintaining a target price of $400.
• Consistent in their evaluation, an analyst from Truist Securities keeps a Buy rating on Home Depot with a target price of $386.
• Maintaining their stance, an analyst from Goldman Sachs continues to hold a Buy rating for Home Depot, targeting a price of $393.
• Maintaining their stance, an analyst from TD Cowen continues to hold a Outperform rating for Home Depot, targeting a price of $440.
• Consistent in their evaluation, an analyst from Guggenheim keeps a Buy rating on Home Depot with a target price of $390.

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.