Home Depot (HD) Options Signal Bullish Breakout Potential: Target $367.50–$370 with Caution on Earnings Volatility

• HD trades at $352.64, down 0.83% from open, with RSI at 42.16 (oversold territory)
• Call open interest spikes at $367.50 and $370 strikes (this Friday’s expirations), while puts cluster at $350
• Q3 earnings miss, housing market concerns, and AI-driven efficiency tools create mixed signals

The options market is whispering a breakout story. Despite today’s dip, heavy call buying at $367.50 and $370 suggests institutional bets on a rebound. But soft earnings and analyst downgrades mean volatility isn’t just a risk—it’s a certainty.Bullish Pressure at $367.50–$370, But Support at $350 Is Critical

HD’s options chain shows a clear divide: 2,901 open interest at the $367.50 call (this Friday’s expirations) and 1,853 at $370, versus 1,479 puts at $350. This isn’t just noise—it’s a vote of confidence from traders expecting a rebound above $356.71 (Bollinger middle band). The put/call ratio of 0.87 (favoring calls) reinforces this, but don’t ignore the $350 level. If HD breaks below that, the $345–$347.50 puts could ignite a short-term bearish cascade.

News Flow: Strategic Moves vs. Earnings Headwinds

Home Depot’s new partnerships (Instacart, AI tools) and supply chain expansion hint at long-term value. But Q3 earnings missed estimates, and 10+ analysts have cut price targets in the last month. The $2.30 dividend (2.6% yield) and Dec 9 investor conference add near-term catalysts. Here’s the tension: bulls see undervaluation in the 8% 2025 slide, while bears point to structural demand shifts. The key is whether HD can hold $352.21 (intraday low) to avoid triggering more panic selling.

Trade Ideas: Calls at $367.50, Stock Buy at $352.21–$356.71

• Options Play: Buy HD20251205C36750 (this Friday’s $367.50 call) or HD20251212C37000 (next Friday’s $370 call). These strikes align with 30D resistance (357.28–358.41) and 200D MA (366.98–368.80). Target a 5–7% move if HD closes above $367.50 by Friday.
• Stock Buy: Enter near $352.21 (intraday low) with a stop below $345. Target $367.50 (call-heavy zone) or $368.79 (200D resistance). For risk-averse traders, a put spread at $350–$345 could hedge downside if HD dips below $352.21.

Volatility on the Horizon: Earnings, Conference, and AI Catalysts

The Dec 9 investor conference and Q3 earnings revisions will test HD’s resolve. If the stock holds $352.21 and rallies above $357.51 (intraday high), the $367.50–$370 call zone becomes a focal point. But watch for short-term bearish triggers: a break below $345 (lower Bollinger band) or negative guidance from the conference. This is a stock at a crossroads—bullish options bets are loud, but fundamentals demand caution.