Home Depot (HD) Offering Possible 6.16% Return Over the Next 33 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 $190.00 short call and a strike $200.00 long call offers a potential 6.16% return on risk over the next 33 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $190.00 by expiration. The full premium credit of $0.58 would be kept by the premium seller. The risk of $9.42 would be incurred if the stock rose above the $200.00 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 24.98 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

Sovos Brands taps Home Depot CFO Carol Tomé for its board of directors
Fri, 15 Mar 2019 04:55:08 +0000
Sovos Brands, a food and beverage company, announced Thursday the appointment of Carol Tomé to its board of directors, where she will also chair the company’s audit committee. Tomé is currently chief financial officer and executive vice president of corporate services for Home Depot (NYSE: HD), but in addition to her retail and financial services expertise, she is a seasoned chair of audit committees and is currently chair of the audit committee for the UPS (NYSE: UPS) Board of Directors. “We’re honored to welcome Carol to the Sovos Brands Board,” said William R. Johnson, chairman of the board for Sovos Brands and operating partner with Advent International. “Her expertise will be invaluable to the Sovos leadership team as they continue on their mission to acquire premium, on-trend brands with high-quality products that have significant growth opportunities.” With the addition of Tomé, the Sovos Brands Board of Directors consists of six members including Bill Johnson, board chairman and operating partner with Advent International; Jeff Case, managing director at Advent International; David Roberts, principal at Advent International; Noosa Yoghurt’s Co-founder Rob Graves and Todd Lachman, president and CEO of Sovos Brands.

The Timely Ten- Blue Chip Buys with Value and Yield
Thu, 14 Mar 2019 10:00:00 +0000
Our The Timely Ten list represents our top ten current recommendations from among our universe of undervalued blue chip stocks, explains dividend expert Kelley Wright, editor of the industry-leading advisory service, Investment Quality Trends.

Wednesday’s Vital Data: Boeing, Home Depot and Advanced Micro Devices
Wed, 13 Mar 2019 13:22:24 +0000
U.S. stock futures are trading higher this morning as buyers look to extend the market rally for the third day in a row.Futures on the Dow Jones Industrial Average are up 0.28% and S&P 500 futures are higher by 0.23%. Nasdaq-100 futures have added 0.32%.Yesterday’s narrow trading range left little to talk about in the options pits. The upward drift in stocks continues to stunt put demand. Calls ruled the day while overall volume patterns hung around average levels. Specifically, about 17.2 million calls and 14.4 million puts changed hands on the session.InvestorPlace – Stock Market News, Stock Advice & Trading TipsWith the excitement of Monday’s mega-rally giving way to a relatively calm session, the CBOE single-session equity put/call volume ratio returned to the middle of its range at 0.66. The 10-day moving average shares the same spot at 0.66.Boeing (NYSE:BA) nosedived 6% amid ongoing safety concerns surrounding its 747 MAX 8 aircraft. Home Depot (NYSE:HD) calls were hoppin’ ahead of Wednesday’s ex-dividend date. Finally, Advanced Micro Devices (NASDAQ:AMD) continued its comeback after a successful 50-day moving average test.Let’s take a closer look: Boeing (BA)The impact of Sunday’s tragic plane crash continues to ripple across the globe. The number of airlines and countries grounding the 747 MAX 8 airplane has grown to include the UK, China, Australia, Indonesia, Singapore and others. Boeing shares once again found themselves fighting to stay a loft in a volatile session that ultimately ended with the stock falling 6.15% amid heavy volume. This morning BA is down another 1.2% in premarket trading. * 15 Stocks Sitting on Huge Piles of Cash All told, the aerospace titan has lost more than $40 billion of market value since this year’s high.Given the massive range of Monday’s trading, yesterday registered an inside day. The fact that buyers emerged to prevent the stock from breaking Monday’s low is the most bullish takeaway from the volatile session. Should that $365 level hold firm, BA may escape this drama with its long-term uptrend intact. Break below it, however, and things will turn nasty.On the options trading front, things were split 50-50 between calls and puts despite the day’s descent. Activity remained lofty at 549% of the average daily volume, with 474,436 total contracts traded.The rocket-like rise in implied volatility continued for a second day, driving the reading to 44%. That places it at the 79th percent of its one-year range signaling premiums have expanded to their highest levels since mid-December. Short option trades like bull puts and iron condors are becoming an increasingly attractive way to play BA. Home Depot (HD)Home Depot’s trading on Tuesday was uneventful on the surface. Buyers won the contest, if only slightly, with a 0.7% gain on the session. However, the looming dividend payout lit a fire in call trading.The price trend for HD stock has improved this year, especially compared to the beatdown suffered in the fourth quarter. Falling interest rates and the housing sector returning to health were two likely culprits, not to mention the improving backdrop of the broader stock market.Though last month’s earnings release caused the stock to stumble, this week’s successful test of the 50-day moving average should embolden bulls. Home Depot is scheduled to trade ex-dividend on Wednesday which means those that don’t own the stock beforehand will not receive the quarterly payment of $1.36. Based on yesterday’s close, the dividend yield is around 3%.As is usually the case ahead of a dividend, calls dominated the options scene. Activity ballooned to 293% of the average daily volume, with 87,209 total contracts traded. 88% of the trading came from call options alone.Implied volatility remains subdued at 18% placing it at the 12th percentile of its one-year range. Premiums are pricing in daily moves of $2.06 or 1.1%. Advanced Micro Devices (AMD)This week’s market rebound is breathing new life into semiconductor stocks. And that has traders once again flocking to AMD shares.Volatility has receded over the past six weeks, allowing the stock to build a sideways base or consolidation zone. Friday’s upside reversal marked a successful test of the zone’s lower end and reaffirms that buyers are in control.On the options trading front, calls outpaced puts by a modest margin. Activity inched higher to 102% of the average daily volume, with 204,377 total contracts traded. Calls accounted for 62% of the day’s take.As the excitement for AMD shares has died down, so too has the implied volatility. At 42%, the metric used by traders to identify if options are cheap or expensive is now sitting at the 7th percentile of its one-year range. Options are officially inexpensive. The daily expected moves are now 62 cents, or 2.6%.As of this writing, Tyler Craig didn’t hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 of the Best Stocks to Buy Under $10 * 7 Retail Stocks Winning in 2019 and Beyond * The 10 Best Stocks to Buy for the Bull Market’s Anniversary Compare Brokers The post Wednesday’s Vital Data: Boeing, Home Depot and Advanced Micro Devices appeared first on InvestorPlace.

See what the IHS Markit Score report has to say about Home Depot Inc.
Tue, 12 Mar 2019 14:25:13 +0000
Home Depot Inc NYSE:HDView full report here! Summary * Perception of the company’s creditworthiness is neutral * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is low Bearish sentimentShort interest | PositiveShort interest is extremely low for HD with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting HD. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding HD totaled $1.70 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers’ Index (PMI) data, output in the Consumer Services sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swap | NeutralThe current level displays a neutral indicator. HD credit default swap spreads are within the middle of their range for the last three years.Please send all inquiries related to the report to score@ihsmarkit.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.

Home Depot and Johnson & Johnson Are Among Stocks Driving the S&P 500
Tue, 12 Mar 2019 13:35:00 +0000
Some unexpected names have turned up on Goldman Sachs’ list. While the company has been getting mixed reviews from analysts in recent weeks, its overall strong performance has been a consistent bright point in the stock market. HD shares have appreciated 154% over the last five years, and the average annual return since the bull market started in 2009 has been 29%.

Be Sociable, Share!

Related Posts