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 20 uncommon options trades for Home Depot.

This isn't normal.

The overall sentiment of these big-money traders is split between 30% bullish and 70%, bearish.

Out of all of the special options we uncovered, 17 are puts, for a total amount of $2,482,841, and 3 are calls, for a total amount of $97,416.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $240.0 to $375.0 for Home Depot over the last 3 months.

Analyzing Volume & Open Interest

In terms of liquidity and interest, the mean open interest for Home Depot options trades today is 588.92 with a total volume of 778.00.

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 $240.0 to $375.0 over 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.

In light of the recent options history for Home Depot, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Home Depot's Current Market Status

• Trading volume stands at 1,009,771, with HD's price up by 0.17%, positioned at $333.46.
• RSI indicators show the stock to be may be oversold.
• Earnings announcement expected in 25 days.

What Analysts Are Saying About Home Depot

5 market experts have recently issued ratings for this stock, with a consensus target price of $394.6.

• Reflecting concerns, an analyst from HSBC lowers its rating to Reduce with a new price target of $323.
• Maintaining their stance, an analyst from Evercore ISI Group continues to hold a Outperform rating for Home Depot, targeting a price of $415.
• An analyst from Evercore ISI Group has decided to maintain their Outperform rating on Home Depot, which currently sits at a price target of $420.
• An analyst from Guggenheim downgraded its action to Buy with a price target of $390.
• Consistent in their evaluation, an analyst from B of A Securities keeps a Buy rating on Home Depot with a target price of $425.

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.