Home Depot (HD) – Options Action Trade for June 11th, 2018
On Friday’s Options Action, the crew analyzed the performance of the homebuilder’s sector. After selling off substantially since Jan, this sector has started to turn bullish again just this week. Looking for a bounce higher, HD is the large-cap name in this sector that would attract institutional investors. Coupled with cheap fundamental valuations and bounce off a bullish trendline, HD has upside to run. Expecting HD to trade higher, Michael Khouw suggests buying a July 200 Call for a $3.25 Debit. As of Friday’s close, this option is trading at $3.60.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: HD Options Action