What the Options Market Tells Us About Home Depot

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 14 uncommon options trades for Home Depot.

This isn't normal.

The overall sentiment of these big-money traders is split between 28% bullish and 50%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $119,477, and 10 are calls, for a total amount of $1,564,142.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $200.0 and $415.0 for Home Depot, spanning the last three months.

Insights into Volume & Open Interest

In terms of liquidity and interest, the mean open interest for Home Depot options trades today is 484.31 with a total volume of 1,809.00.

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 $200.0 to $415.0 over the last 30 days.

Home Depot Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

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 US, Canada, and Mexico. Its stores offer 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 Interline Brands in 2015 allowed Home Depot to enter the MRO business, which has been expanded through the tie-up with HD Supply (2020). The additions of the Company Store brought textiles to the lineup, and the 2024 tie-up with SRS will help grow professional demand in roofing, pool and landscaping projects.

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

Present Market Standing of Home Depot

• With a volume of 2,316,777, the price of HD is up 2.71% at $367.85.
• RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
• Next earnings are expected to be released in 43 days.

What The Experts Say On Home Depot

A total of 1 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $418.0.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * Maintaining their stance, an analyst from Piper Sandler continues to hold a Overweight rating for Home Depot, targeting a price of $418.

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.