Home Depot's most recent trend suggests a bullish bias. One trading opportunity on Home Depot is a Bull Put Spread using a strike $90.00 short put and a strike $85.00 long put offers a potential 13.9% return on risk over the next 25 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $90.00 by expiration. The full premium credit of $0.61 would be kept by the premium seller. The risk of $4.39 would be incurred if the stock dropped below the $85.00 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 above 80 which suggests that the stock is in overbought territory.
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
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Forbes – Labor Day Weekend is upon us and, true to the American work ethic, core to the holiday is labor. But instead of laboring on someone else’s behalf, many Americans choose to labor on their own behalf…generally on their very own piece of the American dream. Making home improvements to either […]
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