Home Depot (HD) Offering Possible 28.21% Return Over the Next 27 Calendar Days

Home Depot's most recent trend suggests a bearish bias. One trading opportunity on Home Depot is a Bear Call Spread using a strike $180.00 short call and a strike $190.00 long call offers a potential 28.21% return on risk over the next 27 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $180.00 by expiration. The full premium credit of $2.20 would be kept by the premium seller. The risk of $7.80 would be incurred if the stock rose above the $190.00 long call strike price.

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

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

The RSI indicator is at 59.51 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

Shutdown clouds outlook for consumer-driven U.S. economic growth
Fri, 18 Jan 2019 09:44:42 +0000
After tax cuts, rising incomes and buoyant stock markets set off a consumer boom in 2018, signs are emerging that the main engine of U.S. economic growth could sputter, and a record-long government shutdown further muddies the waters. Federal Reserve officials and many economists have long counted on continued robust consumer spending to keep the economy chugging along, despite headwinds from recent financial markets turbulence, trade conflicts and weakening global growth. Now they fear the consumer boom could be on the cusp of a reversal.

Home Depot Stock Trades Lower on JPMorgan Price Cut
Fri, 18 Jan 2019 02:30:00 +0000
was lower Thursday after JPMorgan Chase cut its target price for the home-improvement retailer to $203 from $208 but continues to be overweight the stock. -resistant nature of the industry, and significant financial and operating leverage that amplifies EPS growth in better sales environments. With internal momentum building, we expect HD to benefit from its refocused branding and value proposition, which has driven favorable traffic and ticket trends at the retailer,” JPMorgan said in a note to investors.

How Does Lowe’s Valuation Compare to Those of Its Peers?
Thu, 17 Jan 2019 22:00:02 +0000
Will Marvin Ellison’s Initiatives Spark a Turnaround for Lowe’s?(Continued from Prior Part)LOW’s valuation On January 16, Lowe’s Companies (LOW) was trading at a forward PE multiple of 15.7x. In comparison, Lowe’s was trading at a discount

Will Marvin Ellison’s Initiatives Spark a Turnaround for Lowe’s?
Thu, 17 Jan 2019 20:27:20 +0000
Will Marvin Ellison’s Initiatives Spark a Turnaround for Lowe’s?LOW’s performance Last year was a tough one for home improvement retailers. The SPDR S&P Homebuilders ETF (XHB), which tracks home improvement and furnishing companies, fell

Why Home Depot Stock Is Down Today
Thu, 17 Jan 2019 19:45:03 +0000
Why Home Depot Stock Is Down TodayAnalysts’ recommendationsToday, JPMorgan Chase cut its price target for Home Depot (HD) to $203 from $208. The new target represents a potential upside of 14.7% from its January 16 closing price of $177.04.Other

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