Home Depot Tops Sales Forecast Despite Headwinds

Options traders are blasting HD after earnings

Jake Scott

Deputy Editor

Feb 25, 2025 at 10:14 AM

Home Depot Inc (NYSE:HD) surpassed Wall Street’s fourth-quarter estimates, reporting earnings of $3.02 per share -- slightly above the expected $3.01 -- while revenue came in at a higher-than-anticipated $39.70 billion. Despite this strong showing, the company still issued a lackluster forecast for 2025, as higher interest rates and housing prices hurt demand for large remodeling projects.

At last glance, HD was up 2.9% to trade at $393.33, bringing it back above breakeven for 2025. On track to snap a six-day losing streak, the shares still face resistance at their 150-day moving average. Longer term, Home Depot stock has added 19.3% in the last nine months.

Options volume is already running at five times the intraday average, with 15,000 calls and 11,000 puts traded so far today. The most active contract is the weekly 2/28 400-strike call, where new positions are being bought to open.

Calls have been the preferred choice for some time, per HD's Schaeffer's put/call open interest ratio (SOIR) that ranks in the 4th percentile of annual readings. Echoing this, the stock's 50-day call/put volume ratio of 1.52 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands above 88% of readings from the past 12 months.

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