Home Depot Bears Load Up on Puts as HD Stock Trades Near 52-Week Lows
By TrendSpider Editor
Home Depot, Inc. (HD) is drawing notable bearish attention in the options market on Friday, July 31, 2026, with two large put contracts accounting for the lion's share of $3,824,758 in total unusual options premium detected across four contracts. HD shares are currently trading at $331.84, down 0.45
Home Depot Bears Load Up on Puts as HD Stock Trades Near 52-Week Lows
Home Depot, Inc. (HD) is drawing notable bearish attention in the options market on Friday, July 31, 2026, with two large put contracts accounting for the lion's share of $3,824,758 in total unusual options premium detected across four contracts. HD shares are currently trading at $331.84, down 0.45% on the session, and sit in the lower half of their 52-week range of $289.10 to $426.75, leaving significant downside open toward the yearly floor.
Key Drivers of the HD Stock Move
- Main Catalyst: Four unusual options contracts have been flagged on HD today, with the dominant activity being two sizable put positions: a $320 put expiring January 15, 2027 with a block of 1,000 contracts and $2,125,000 in premium, and a $330 put expiring September 18, 2026 with another 1,000 contracts and $1,549,000 in premium. Combined, the two put legs represent $3,674,000 of the $3,824,758 total premium flow.
- Bull Case: On the call side, a $325 strike call expiring February 19, 2027 came in with an open interest ratio of 1,000%, flagging it as a highly unusual burst of new positioning at a strike that is currently in-the-money relative to the current price of $331.84. A second call at the $370 strike expiring August 14, 2026 attracted 2,939 contracts, indicating some traders do see a potential near-term recovery.
- Bear Case: The put premium overwhelmingly dominates today's flow at roughly 96% of total spend. The $330 put expiring September 18, 2026 is nearly at-the-money with HD at $331.84, suggesting traders are positioning for the stock to break below current levels within seven weeks. The $320 put targeting January 2027 implies a potential move toward the lower end of HD's 52-week range near $289.10.
The forward setup for HD warrants close attention heading into August. The stock has spent much of 2026 trading well below its 52-week high of $426.75, and today's options flow suggests institutional or sophisticated traders are not confident in a near-term recovery. The clustering of put strikes at $320 and $330 creates a clear technical zone to watch: a sustained break below $330 could validate the bearish thesis embedded in these contracts. The near-term $370 call expiring August 14, 2026 represents a contrarian bet, but with HD currently at $331.84, that strike sits nearly 11.5% out of the money, making it a lower-probability play without a significant catalyst. Investors should monitor whether HD can hold the $330 level heading into the September expiration window, as a failure there could open the door toward $320 and potentially test the broader 52-week low support zone.
HD Unusual Options Activity
- Contract 1: Put | Strike: $320 | Expiry: January 15, 2027 | Size: 1,000 | OI%: 39% | Status: OTM | Premium: $2,125,000
- Contract 2: Put | Strike: $330 | Expiry: September 18, 2026 | Size: 1,000 | OI%: 47% | Status: OTM | Premium: $1,549,000
- Contract 3: Call | Strike: $370 | Expiry: August 14, 2026 | Size: 2,939 | OI%: 86% | Status: OTM | Premium: $123,438
- Contract 4: Call | Strike: $325 | Expiry: February 19, 2027 | Size: 8 | OI%: 1,000% | Status: ITM | Premium: $27,320
Total unusual contracts flagged: 4. Total premium across all contracts: $3,824,758. Put premium represents the clear majority of today's flow, reflecting a net bearish directional bias in today's unusual activity.
HD Seasonality
Home Depot has historically experienced a seasonally active trading period in late summer, as investors assess the tail end of the spring and summer home improvement selling season. A put-heavy flow arriving at the end of July could reflect concern that peak seasonal demand is now fading, with the September expiration put timed closely to the period when that seasonal tailwind typically subsides.
HD Relative Performance
At $331.84, HD is trading approximately 22.3% below its 52-week high of $426.75 and only about 14.7% above its 52-week low of $289.10, placing it in the lower third of its annual range. The modest 0.45% decline on the session suggests the broader market is not in a broad selloff today, making the targeted bearish options positioning in HD stand out as stock-specific rather than macro-driven.
More on HD
- Home Depot Stock Slides 1.80% as Unusual Options Flow Skews Bearish With $862K in Put Premium
- Home Depot Stock Sees $1.2M in Unusual Options Activity as Shares Slide 2.42%
- Home Depot Sees $1.43M in Bearish Put Activity as Stock Slides to $337.73
- Home Depot Sees $2.3M in Bullish Call Activity as Options Traders Target $400 and Beyond
- Home Depot Sees Bullish Unusual Options Activity as Traders Target $380-$385 Calls Ahead of September Expiry
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