Home Depot (HD) Options Signal Bullish Bias: Target $380 Call Play as Institutional Buying and Technicals Align

• Home Depot (HD) surges 3.5% to $372.06, breaking above its 200D moving average of $373.00.
• Options data shows heavy call open interest at $380 (2,570 contracts) and $450 (2,449) for next Friday, while puts cluster at $345 (3,703).
• Institutional block trades include a $7M sale of HD20260220C365 calls and a $2.3M purchase of HD20260109C360 calls this week.

The big picture? HD’s price action and options flow scream bullish momentum. With technicals aligning and institutional bets piling in, the $380 level is a critical inflection point—here’s why traders should pay attention.Bullish Options Flow and Whale Moves

The options market is painting a clear picture: bulls are stacking up. For Friday’s expirations, the $380 call (OI: 2,178) and $375 call (OI: 448) show heavy interest, while next Friday’s $380 call (OI: 2,570) and $450 call (OI: 2,449) suggest anticipation of a larger move. The put/call ratio of 0.725 (favoring calls) reinforces this bias.

But don’t ignore the risks. The $340–$345 put cluster (7,750+ OI) hints some players are hedging against a pullback. And those block trades? The 4,193-share sale of HD20260220C365 calls could signal profit-taking or hedging by large holders. Meanwhile, the 1,660-share purchase of HD20260109C360 calls this week shows short-term bullish conviction.

News That Fuels the Fire

Institutional investors are doubling down. HB Wealth Management’s 1.9% portfolio allocation to HD and CX Institutional’s 56% position increase in Q3 2025 scream confidence. Analysts like TD Cowen ($410 target) and Telsey ($410) are still bullish, even after HD’s Q3 earnings miss and revised guidance.

But here’s the twist: The $394 fair value estimate from analysts and HD’s 8.8% undervaluation create a tailwind for the $380 call target. However, the Pomerantz lawsuit and Q4 2025 EPS risks (projected 19.2% decline) mean volatility isn’t going away. Smart traders will balance optimism with caution.

Actionable Trade IdeasFor Options:

• Bullish Play: Buy HD20260116C380 calls (next Friday’s expiration). HD is trading at $372.06—close to this strike—and the RSI (53.16) and MACD crossover suggest upward momentum. If HD breaks $374.36 (intraday high), these calls could gain steam.
• Hedge: Buy HD20260116P345 puts (OI: 3,703) if the stock dips below $361.31 (intraday low). The 200D support at $357.87 could act as a floor.

For Stock:

• Entry: Consider buying HD near $361.31 if it holds above this level. A break above $374.36 (intraday high) would validate the bullish engulfing pattern.
• Targets: First target $380 (aligns with call OI hotspots), then $394 (fair value).
• Stop-Loss: Below $351.25 (30D support range) invalidates the setup.

Volatility on the Horizon

HD’s technicals, options flow, and fundamentals are in sync for a bullish breakout—but don’t ignore the shadows. The Q4 earnings risks and legal cloud could trigger a pullback to $345–$350. That said, the 3.5% rally today and institutional buying suggest the $380–$394 range is in play.

Traders with a medium-risk appetite should focus on the HD20260116C380 call and a stock buy near $361.31. For the cautious, a collar strategy (buying the $380 call + $345 put) could lock in upside while hedging downside. Either way, HD’s options market is sending a clear signal: the bulls are in charge—for now.