Home Depot (HD) Offering Possible 16.28% Return Over the Next 8 Calendar Days

Home Depot's most recent trend suggests a bullish bias. One trading opportunity on Home Depot is a Bull Put Spread using a strike $227.50 short put and a strike $222.50 long put offers a potential 16.28% return on risk over the next 8 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $227.50 by expiration. The full premium credit of $0.70 would be kept by the premium seller. The risk of $4.30 would be incurred if the stock dropped below the $222.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Home Depot is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Home Depot is bullish.

The RSI indicator is at 75.2 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


LATEST NEWS for Home Depot

UPDATE 3-White House adviser plays down expectations for U.S.-China talks
Wed, 11 Sep 2019 00:10:07 +0000
A senior White House adviser tamped down expectations on Tuesday for the next rounds of U.S.-China trade talks, urging investors, businesses and the public to be patient about resolving the two-year trade dispute between the world's two largest economies. “If we're going to get a great result, we really have to let the process take its course,” Peter Navarro said on CNBC. U.S. President Donald Trump's administration is seeking sweeping changes to China's policies and practices on intellectual property protection, the forced transfer of U.S. technology to Chinese firms, American companies' access to China's markets and industrial subsidies.

Maverick Risk
Tue, 10 Sep 2019 20:30:40 +0000
As contrarians running a large-cap value strategy, our stock-picking discipline is organized around taking regular maverick risk on companies that meet our 8 criteria Continue reading…

The Zacks Analyst Blog Highlights: Molina, NRG, Kinross Gold, Apple and Home Depot
Tue, 10 Sep 2019 12:29:12 +0000
The Zacks Analyst Blog Highlights: Molina, NRG, Kinross Gold, Apple and Home Depot

The Zacks Analyst Blog Highlights: Microsoft, Home Depot, AbbVie, Disney and Host Hotels
Mon, 09 Sep 2019 15:20:03 +0000
The Zacks Analyst Blog Highlights: Microsoft, Home Depot, AbbVie, Disney and Host Hotels

Monday’s Vital Data: Home Depot, Snap Inc and Amazon
Mon, 09 Sep 2019 13:26:22 +0000
U.S. stock futures are trading higher this morning in a continuation of last week's breakout. Optimism surrounding recent strides in the U.S.-China trade war survived the weekend intact, and investors have returned to the business of buying.Source: Shutterstock Ahead of the bell, futures on the Dow Jones Industrial Average are up 0.22% and S&P 500 futures are higher by 0.34%. Nasdaq-100 futures have added 0.28%.In the options pits on Friday, calls were the hot commodity during a session that saw overall volume climb to above-average levels. Approximately 20.1 million calls and 15.4 million puts traded.InvestorPlace – Stock Market News, Stock Advice & Trading TipsMeanwhile, over at the CBOE, Thursday's shallow reading in the single-session equity put/call volume ratio was followed-up by another low number of 0.56. The 10-day moving average continued its rollover with a drop to 0.66.Options traders favored calls in several marquee names. Home Depot (NYSE:HD) shares stretched to a new record high amid higher than usual options volume. Snap (NYSE:SNAP) finally broke out of a falling wedge pattern on high volume and unusual call activity. Finally, Amazon (NASDAQ:AMZN) shares paused after Thursday's breakout attempt, while buyers continued to chase calls. * 10 Buy-and-Hold Stocks to Own Forever Let's take a closer look: Home Depot (HD)Home Depot shares ended the week on a high note, rallying to a new record close at $231.13. Robust earnings growth, coupled with a firm price trend, have propelled the home construction giant to a 33% year-to-date gain. This compares to only a 19.3% gain for the S&P 500. Momentum traders flocking to relative strength no doubt have HD stock sitting atop their respective watch lists.Friday's surge cleared a prior pivot high signaling an official breakout that should bring buyers to the yard. That said, HD is moving into overbought territory so it's not the best entry point.On the options trading front, calls outpaced puts by a wide margin. Total activity grew to 287% of the average daily volume, with 130,643 contracts traded; 86% of the trading came from call options alone.Implied volatility remains in the lower quartile of its one-year range at 21%. The rank of 25% suggests selling puts, and bull puts will only yield small pay-days. If you're inclined to chase here, bull call spreads (such as buying the Nov $230/$240) offer a better risk-reward. Snap (SNAP)Snap shares have technicians salivating after Friday's textbook rally. The past month of consolidating took on the form of a falling wedge. And after pausing for a week to build momentum, SNAP stock finally burst higher with a high volume, 4.7% gain.The jump carried SNAP above near-term resistance and its 20-day moving average and signals its next upswing has officially begun. Look for followthrough to push the stock back toward its 52-week high at $18.36.Friday's buying bonanza lit a fire under options trading with calls leading the charge in a big way. By day's end, activity climbed to 283% of the average daily volume, with 259,428 total contracts traded. Calls accounted for 86% of the session's sum.Implied volatility ticked higher on the day but remained in the basement. At 52%, it rests at the 13th percentile of its one-year range. The low reading, coupled with Snap's cheap price tag, make long calls a compelling buy here. The Oct $16 calls could work for a short-term speculative bet. Otherwise, grab the Jan $16 calls to give yourself more time. * 7 "Boring" Stocks With Exciting Prospects Amazon (AMZN)Thursday's upside breakout in the tech-heavy Nasdaq is pointing the way for Amazon. Ever since July's beatdown, AMZN stock has been stuck in a trading range or base, biding time until demand would return and its long-term uptrend would resume. But if last week's awakening in stock indexes is any indication, the time for AMZN bulls to respond is now.Indeed, the stock did see a breakout attempt on Thursday, and though the follow through has been tepid, buyers hold the upper hand. Look for a run toward its 50-day moving average at $1,875.On the options trading front, calls won the popularity contest despite Friday's down day. Activity swelled to 116% of the average daily volume, with 184,251 total contracts traded. Calls added 58% to the day's take.The past month's trading range has killed implied volatility. At 23% or only the 5th percentile of its one-year range, premiums are incredibly cheap here. Bull call spreads are a no-brainer if you're banking on higher prices.As of this writing, Tyler Craig held bullish positions in SNAP. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post Monday's Vital Data: Home Depot, Snap Inc and Amazon appeared first on InvestorPlace.

Be Sociable, Share!

Related Posts

 

MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.


This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.


The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.


The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.