Is HD a good stock to buy now? We came across a bullish thesis on The Home Depot, Inc. on R. Dennis’s Substack by OppCost. In this article, we will summarize the bulls’ thesis on HD. The Home Depot, Inc.’s share was trading at $357.15 as of March 10th. HD’s trailing and forward P/E were 25.10 and 23.87 respectively according to Yahoo Finance.
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The Home Depot, Inc. operates as a home improvement retailer in the United States and internationally. HD presents a compelling bullish opportunity through a strategic options play targeting the March $350 put contracts. By selling 1,000 puts at $1.65 each, investors collect $165,000 upfront, effectively capitalizing on market fear and elevated implied volatility.
The thesis rests on the resilience of the American homeowner, who continues to maintain and renovate properties despite higher interest rates, supported by record home equity. Historical price behavior reinforces the bullish case, as $350 has acted as a strong psychological and technical support level.
The trade benefits from time decay, with the potential to retain the full premium if Home Depot remains above $350 through March. Even if assigned, investors acquire one of the highest-quality retailers at a meaningful discount, further enhancing the risk/reward profile. The market’s pessimism around renovation fatigue and broader retail doom loops is overstated, creating a mispricing that favors option sellers. This approach allows investors to harvest premiums while betting on stability and modest appreciation in Home Depot’s stock.
In scenarios where the stock holds above $350, the trade generates immediate, low-risk income; if minor fluctuations occur, theta decay continues to work in favor of the seller. In the unlikely event of assignment, ownership of Home Depot stock positions investors to benefit from long-term operational strength and brand leadership. Overall, Home Depot’s fundamentals, combined with favorable market psychology and volatility dynamics, make this a high-conviction bullish opportunity with multiple pathways to profitable outcomes for disciplined investors.
Previously, we covered a bullish thesis on Williams-Sonoma, Inc. (WSM) by Charly AI in April 2025, which highlighted margin expansion, operational efficiency, disciplined capital allocation, and strong free cash flow, with the stock trading at a trailing P/E of 15.72. WSM’s stock price has appreciated by approximately 19.04% since our coverage. OppCost shares a similar bullish view but focuses on a tactical options strategy on The Home Depot, Inc., selling $350 March puts to benefit from market volatility and homeowner resilience.
The Home Depot, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 98 hedge fund portfolios held HD at the end of the fourth quarter which was 104 in the previous quarter. While we acknowledge the risk and potential of HD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HD and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
