Spotlight on Home Depot: Analyzing the Surge in 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 15 uncommon options trades for Home Depot.

This isn't normal.

The overall sentiment of these big-money traders is split between 20% bullish and 53%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $359,730, and 9 are calls, for a total amount of $289,010.

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Predicted Price Range

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $300.0 to $460.0 for Home Depot over the last 3 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 $300.0 to $460.0 in the last 30 days.

Home Depot 30-Day Option Volume & Interest Snapshot

Noteworthy Options Activity:

About Home Depot

Home Depot is the world's largest home improvement specialty retailer, operating 2,350 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.

Current Position of Home Depot

• Trading volume stands at 1,460,051, with HD's price up by 0.21%, positioned at $373.88.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 69 days.

Expert Opinions on Home Depot

In the last month, 5 experts released ratings on this stock with an average target price of $431.6.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * An analyst from Guggenheim has revised its rating downward to Buy, adjusting the price target to $450. * Maintaining their stance, an analyst from Telsey Advisory Group continues to hold a Outperform rating for Home Depot, targeting a price of $455. * An analyst from Stifel upgraded its action to Buy with a price target of $425. * Consistent in their evaluation, an analyst from JP Morgan keeps a Overweight rating on Home Depot with a target price of $418. * An analyst from JP Morgan persists with their Overweight rating on Home Depot, maintaining a target price of $410.

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.