CNBC’s Options Action Trade for August 14th, 2017 – Home Depot (HD)
On Friday’s CNBC’s Options Action, the crew analyzed the performance of Home Depot (HD). Home Depot has rallied in 2016 on an absolute basis, however has failed to reach new highs on a relative basis to the S&P500. It has failed to gain much new ground in 2017 and has recently rallied significantly going into earnings next week. HD has just reached the top of a triangle formation and may bounce lower off its resistance level. Expecting a bounce lower, Michael Khouw suggested buying an Oct 25 Call for a $0.90 Debit.
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: CNBC Options Action