HD Options Signal Bullish Bias as $360 Call OI Surges—Here’s How to Play the Upcoming Catalysts

• HD trades at $356.92, up 0.4% with volume surging past 2.1M shares.
• Call open interest dominates at $357.5 and $360 strikes, while puts pile up at $310 and $335.
• Q3 earnings missed EPS estimates, but AI tool launch and investor conference could drive near-term momentum.

Here’s the takeaway: Options market sentiment leans bullish in the short term, but technicals hint at a tug-of-war between $353 support and $366 resistance. Let’s break it down.

Bullish Calls Stack Up, But Puts Tell a Cautionary Tale

The options chain tells two stories. This Friday’s call open interest peaks at $357.5 (OI: 2,994) and $360 (OI: 1,852), suggesting traders are eyeing a push above the 30-day high of $385. But don’t ignore the puts: $310 (OI: 2,040) and $335 (OI: 904) strikes show heavy downside protection buying, likely from investors hedging against a potential earnings-driven selloff. The put/call ratio of 0.8 (calls > puts) reinforces the near-term bullish bias, but the wide gap between call and put strikes implies volatility could swing either way.

News Flow: Mixed Bag with a Tech Twist

The Home Depot’s Q3 results were a mixed bag—sales grew 2.8% but EPS fell short of estimates. Management’s revised guidance (5% lower adjusted EPS) explains the bearish puts. Yet the AI-powered Blueprint Takeoffs tool and the upcoming investor conference on Dec 9 could flip the script. Think of it like a contractor’s blueprint: the tool streamlines workflows, and the conference might highlight untapped value. Retail traders might be pricing in optimism here, while institutions are hedging the downside. The dividend announcement ($2.30/share) also keeps income seekers anchored, but it’s unlikely to move the needle much in the short term.

Trade Ideas: Calls for the Breakout, Puts for the Safety Net

For options players, the HD20251205C360 call (expiring next Friday) looks compelling. If HD breaks above $357.5 (current intraday high), this strike could catch momentum. Entry near $3.50–$4.50 per contract offers a risk-reward setup with a target at $365. For downside protection, consider a put spread using HD20251205P350 (OI: 1,263) and HD20251205P345 (OI: 463). If HD dips below $353 (intraday low), the $350 strike could act as a buffer while capping losses.

Stock traders should watch $353 support and $366 resistance. A close above $357.5 would validate the bullish case, with targets at $366 (200D MA) and $385 (resistance). If the price clings to the 200D MA ($366.98), consider entries near that level with a stop below $353.

Volatility on the Horizon

The coming weeks are a tightrope walk. The AI tool rollout and investor conference could be tailwinds, but housing market pressures linger. Options buyers have priced in a 10–15% move by Dec 5, based on implied volatility. If HD holds above $353, the bulls have a clear path to reclaim the 30D MA at $384.75. But a breakdown below $353 would test the $345 support level, where puts are clustered. Either way, this is a stock where options activity and fundamentals are in sync—just pick your side of the bet carefully.