Home Depot (HD) Options Signal Bullish Bias: Key Strikes at $370 Call and $350 Put Define Risk/Reward for Traders This Week

• HD surges 1.45% today, trading at $362.09 with a short-term bullish trend but long-term range-bound profile
• Options market shows 26% more open interest in calls than puts, with heavy call volume at the $370 strike and puts at $350
• Citi cuts HD price target to $407 from $422, citing weaker consumer spending and earnings misses

Here’s the thing: HD’s options market is whispering a story of cautious optimism. While the stock grinds higher today, the battle between bulls and bears is playing out in the options chain—and the numbers lean toward a breakout attempt. Let’s break it down.

Bullish Calls and Bearish Puts: A Tale of Two Strikes

HD’s options activity tells a clear tale. For Friday’s expiration (Dec 5), the $370 call (HD20251205C370) has 1,130 open contracts—the highest of any strike. That’s not just noise; it’s a magnet for capital betting on a push above the 30-day resistance zone (384.76–385.95). Meanwhile, the $350 put (HD20251205P350) dominates with 1,327 open contracts, suggesting hedgers are bracing for a pullback. The put/call ratio of 0.84 for open interest (more calls than puts) reinforces the bullish tilt. But don’t ignore the puts: heavy interest at $350 means a sharp drop below $352.88 (today’s intraday low) could trigger selling pressure.

Citi’s Cut and HD’s Earnings: A Headwind or a Buying Opportunity?

Citi’s revised $407 target still leaves room for a 12% gain from current levels, but the earnings miss in Q3 raises red flags. Management’s explanation—weak consumer spending and fewer storms—hits at HD’s core drivers. Yet the options market isn’t panicking. The $370 call’s popularity suggests traders expect a rebound before year-end, possibly fueled by holiday sales. The risk? If consumer sentiment deteriorates further, the 200-day moving average ($366.98) could turn into a battleground. A close below that would validate the puts’ bearish case.

Actionable Trades: Calls for Breakouts, Puts for Protection

For the aggressive: Buy the HD20251205C370 call if HD holds above its 200D MA ($366.98). Target: $385 (30-day resistance). Stop-loss: below $360.

For the cautious: Buy the HD20251205P350 put if HD dips to $355. Target: $345 (next support level). Stop-loss: above $362.

Stock players: Consider entries near $360 (Bollinger Band middle) with a target at $385. If HD breaks $366.98, re-evaluate for a longer-term hold.

Volatility on the Horizon: Balancing Bullish Bets and Bearish Safeguards

HD isn’t asking for a leap of faith—it’s offering a calculated chess match. The options data and technicals align on one thing: $370 is the make-or-break level for bulls this week. If it holds, the path to $400 opens. If not, the puts at $350 could become a lifeline. Either way, the next 72 hours will clarify whether this is a short-covering rally or the start of a deeper correction. Keep your eyes on the 30-day resistance zone—it might just decide HD’s holiday season.