Home Depot (HD) Options Signal Bullish Bias: Target $380 Calls as 2026 Begins

• Options data highlights heavy call open interest at the $380 strike for next Friday’s expiration.
• Technical indicators suggest a short-term bearish trend but long-term range-bound setup.
• Jim Cramer’s bullish endorsement and professional market expansion align with options-driven optimism.

Here’s the thing: Home Depot’s options market is whispering a clear message—traders are leaning hard into bullish bets, even as the stock wavers near its 30-day low. With the put/call ratio at 0.87 (favoring calls) and a $380 call strike dominating next Friday’s open interest, the stage is set for a potential breakout. But let’s dig into why this matters and how to position for it.

Bullish Calls Dominate, But Caution Lingers at the Edges

The options chain tells a story of conviction. For next Friday’s expiration (Jan 9, 2026), the HD20260109C380 call option leads with 2,174 open contracts, nearly double the next closest strike. This suggests a significant portion of traders expect HD to surge past $380—a level 10% above today’s price. Meanwhile, puts are less aggressive, with the $342.5 strike (HD20260109P3425) at 340 open contracts. The imbalance isn’t just a numbers game: it reflects a market pricing in optimism about Home Depot’s professional market push and Cramer’s recent endorsement. But don’t ignore the risks—RSI at 51.12 and MACD below zero hint at lingering short-term weakness. If HD fails to break above its 200-day MA ($373.18), those bullish calls could face a reality check.

News Flow: Strategic Moves vs. Mixed Analyst Signals

Home Depot’s recent GMS and SRS acquisition is a big deal. Adding 1,200 distribution points isn’t just a logistics win—it’s a signal that the company is doubling down on professional contractors, a segment with higher margins. Jim Cramer’s “buy more” call and Telsey Advisory’s $430 price target (even after a cut from $455) reinforce this narrative. But the insider sale by Teresa Wynn Roseborough and Bernstein’s “Hold” rating add friction. Here’s the rub: while the fundamentals are strong, the market might be pricing in a “wait-and-see” attitude. Consumer sentiment is also a wildcard—the Walmart-like policy shift could dent retail sales, but Home Depot’s digital tools and energy-efficient product push might offset that.

Actionable Trade Ideas: Calls for the Bold, Stock for the Patient

If you’re bullish but cautious, the HD20260109C380 call is your best bet. With HD trading at $345.88, this strike offers a 10% buffer to breakeven by Jan 9. Why not the $360 strike? Higher OI at $380 suggests better liquidity and a stronger collective conviction. For stock traders, consider entry near $345.15 (today’s intraday low) if support holds. A break above $356.92 (30D resistance) could trigger a rally toward the $373.18 200D MA. If you’re bearish, the HD20260109P3425 put offers downside protection, but the put/call ratio suggests this is a minority play.

Volatility on the Horizon: Balancing Optimism and Prudence

Home Depot’s 2026 start is a tightrope walk. The options market is pricing in a $380+ move, but technicals and mixed analyst ratings mean volatility isn’t guaranteed. The key takeaway? Position yourself with the $380 calls if you’re confident in the professional market narrative, but keep a close eye on the $341.80 lower Bollinger Band. A break below that could force a reevaluation. For now, the data leans bullish—but never bet the farm on a single strike. Diversify your approach, and let the market’s whispers guide your next move.