HD Options Signal Bullish Contingency at $360 as Puts Pile Up Near $340—Here’s How to Play It

• Home Depot’s price target was raised to $415, implying 21% upside, but options show a tug-of-war between bulls at $360 and bears at $340.
• Call open interest spikes at $360 (OI: 897) and $365 (OI: 854) for Friday expiry, while puts cluster at $342.5 (OI: 895) and $340 (OI: 343).
• RSI at 43.8 and Bollinger Bands suggest the stock is testing support near $341.94, with 30D MA at $353.41 acting as a key psychological hurdle.

Here’s the takeaway: The options market is pricing in a high-stakes scenario. Bulls are hedging a rebound toward $360, while bears are locking in downside protection near $340. The stock’s 0.56% dip today adds urgency—this isn’t just noise. It’s a setup.

The Bull-Put Battle: Calls at $360 vs. Puts at $342.5

Let’s break down the options chess game. For Friday expiry (Dec 26), HD20251226C360 and HD20251226C365 have the highest open interest, totaling 1,748 contracts. That’s not just a bet on a rally—it’s a signal that institutional players are preparing for a short-term breakout. Meanwhile, puts like HD20251226P3425 (OI: 895) and HD20251226P340 (OI: 343) show a defensive stance. The put/call ratio of 0.86 (favoring calls) reinforces this tension.

But here’s the catch: The RSI at 43.8 and MACD crossing above its signal line hint at a potential rebound. Yet the 200D MA at $373.53 looms as a massive overhang. If HD breaks below the lower Bollinger Band ($341.14), those puts could get a boost. No block trades to worry about—this is retail and institutional money talking.

News That Could Tip the Scales

The recent $415 price target from Wolfe Research is a big deal. A 21% upside target usually sparks momentum, but the correction to the Dec 9 sales forecast complicates things. The market-recovery forecast (4–5% comp sales) isn’t a slam-dunk—it’s conditional on broader economic stability. And let’s not forget Jim Cramer’s Fed sensitivity warning: if rates hold, HD could struggle. But with holiday spending hitting $1 trillion, the short-term retail tailwind is real.

Analysts are split—21 “Buy” vs. 2 “Sell” ratings—but the average target of $402.10 still gives bulls room to breathe. The key question: Will the stock hold its 30D support at $356.66, or will the 200D MA drag it down?

Trade Ideas: Calls for the Breakout, Puts for the Drop

For options traders, the HD20251226C360 and HD20251226C365 strikes are your best bets this week. If the stock rebounds off $341.94 (intraday low), these calls could catch fire—especially if it closes above $357.49 (30D resistance). For a longer play, HD20260102C360 (next Friday expiry) offers more time for a rally.

On the downside, HD20251226P3425 and HD20251226P340 are your hedges. If HD dips below $341.94, these puts could gain value. For stock players, consider entry near $341.94 if support holds, with a target at $357.49. If it breaks below $341.14 (lower Bollinger Band), aim for a short near $337.50.

Volatility on the Horizon

The next 72 hours will be critical. If HD holds above $341.94, the bulls at $360 could push it toward $357.49. But a close below $340 would validate the puts’ bearish case. Either way, the options market is pricing in a directional move—just not yet which way. Stay nimble, and watch those $360 calls like a hawk. The holidays might be over, but the real action is just heating up.