HD Options Activity Signals High Call OI at $347.5, Put OI at $315 — What Traders Should Know About the Bullish Setup

The Home Depot (HD) is trending higher on strong Q1 earnings and a $3B buyback.Options traders are loading up on calls at the $347.5 level with high open interest.Puts are piling in at $315, but call dominance suggests a near-term bullish bias.

What do you do when a stock is sitting at $330.28, rising on the back of a $38.4B quarter, and has a call/put OI ratio of 0.86—favoring calls? You pay attention.

Bullish Pressure in the Options Room

The options market is sending a clear message: traders are leaning bullish. For this Friday’s expiration, the top OTM call is at $347.5 with open interest of 3,356 contracts. That’s not just noise—it’s a signal that many market participants expect HD to break through resistance before the close of next week.

On the put side, $315 has the most open interest at 1,732 contracts. That’s significant, but the call activity dwarfs it. The call/put OI ratio of 0.86 isn’t just a number—it’s a vote of confidence in the near-term direction.

Block trading has been quiet today, which means no whales are moving massive chunks of the option chain—no big bearish or bullish surprises in the shadows. But the sheer volume of open interest at $347.5 suggests that many are betting on a short-term pop before the close of this week’s expiration.

Recent News Bolsters the Bull Case

The Home Depot’s Q1 earnings weren’t just solid—they were impressive. EPS of $3.15 beat estimates by 10.7%, and the company raised its full-year guidance in a sector that’s been facing headwinds. That kind of earnings power fuels investor optimism.

The $3B share buyback and $2.5B in cap ex for 2026 show HD is doubling down on growth. It’s not just about the numbers—it’s about the message the company is sending to the market. And then there’s the new smart home partnerships, the EcoFlo acquisition, and the $100M affordable housing investment. HD is expanding in both product and purpose, and investors are taking note.

The bearish analysts are still circling—there’s a 5% drop in international earnings and a few downgrades. But the bulls are louder. The call/put OI imbalance lines up with the recent upgrade wave from JPMorgan and Goldman Sachs, who’ve both raised price targets after the earnings beat.

Where to Place Your Bets

If you want to play HD’s next move, the options market is giving us a roadmap. For this Friday’s expiration, the HD20260403C34750 call is the most interesting. It’s OTM, but the high OI suggests many are expecting a pop above $347.5 before the 3rd. If you’re comfortable with a short-term trade and a little time decay, this could offer a punchy move if HD breaks through the $347.5 level.

For a safer entry, consider a stock position. HD is currently near the middle of its Bollinger Bands at $330.28. The 30D moving average is at 352.128, and the 200D is at 373.835—but that’s a long way out. Look for support at the 30D level, which is currently around $329.67–$330.95. If the stock holds there and shows buying pressure, consider an entry near $330.50 with a stop just below $327.81 (today’s intraday low). A breakout above $332.30 would signal continued strength and a potential move toward $340.

Next Friday’s options give us a bit more breathing room. If you want to play with a longer runway, the HD20260410C35000 call is a solid choice. It’s OTM, but with OI of 639, it’s clearly on traders’ radar. With HD’s momentum and the support from recent news, this option could pay off if the stock stays above $330 and shows signs of pushing higher before the 10th.

Volatility on the Horizon

The market is watching HD closely. The RSI is at 33.68—still in oversold territory—which means there’s room for a rebound if the trend continues. The MACD is negative but flattening, and the histogram is barely dipping below the signal line—indicating that the bearish pressure is easing.

The real question is whether the stock can hold the $330.95 level and continue its climb. If it can, the call-heavy OI at $347.5 and $350 may very well turn into a rally. If not, the puts at $315 could start to look more attractive.

So what’s your move? If you believe in the HD story—and the options market does—then you’re looking at a setup that favors a bullish play with clear levels to watch. Just don’t forget the stop. This isn’t a sure thing, but it’s a smart, data-backed setup to consider today.