CNBC’s Options Action Trade for Feb 20th, 2017 – Home Depot (HD)
On Friday’s CNBC’s Options Action, the crew analyzed the relative performance of Home Depot going into earnings since 2015. Despite having similar price performance to the S&P500, HD has had earnings growth over 30 times higher. Coupled with a recent breakout above its $140 resistance level, and far superior earnings growth, the crew expects HD to beat earnings and rally next week. Michael Khouw suggested buying an April 145 Call for a $2.00 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