Home Depot Stock Slides as Weak Demand Dings Earnings

Core Insights - Home Depot Inc reported adjusted third-quarter earnings of $3.74 per share, which fell short of estimates despite revenue exceeding forecasts [1] - The company has reduced its full-year outlook due to weak demand and less storm damage affecting homes recently [1] - Following the earnings report, shares of Home Depot fell 3.9% to $345.93, marking a potential fifth consecutive drop and the worst single-session performance since April 3 [2] Financial Performance - Home Depot's stock is currently 11% lower in 2025 and nearly 20% off its year-to-date high of $426 from September [2] - The stock's 14-Day Relative Strength Index (RSI) is at 20, indicating it is in "oversold" territory [2] Options Activity - There has been a significant increase in options trading, with 16,000 calls and 18,000 puts purchased in a single day, five times the average intraday pace [3] - The most popular options are the November 260 call and 335 put, with new positions being opened for the former [3] Volatility and Trading Trends - Over the past 50 days, calls have been more popular than usual, with a call/put volume ratio of 2.15, ranking higher than 93% of readings from the past year [4] - Home Depot tends to outperform options traders' volatility expectations, as indicated by its Schaeffer's Volatility Scorecard (SVS) of 70 out of 100 [4]