Short term
Trade view / 26 May 2015 at 22:56 GMT

Possible bearish bounce on Home Depot

Product Manager, Options Trader, Educator
Instrument: HD:xnys
Price target:
Market price:

Despite its overall uptrend and structurally improving fundamentals, shares of US home improvement retailer Home Depot failed to move further to the upside as investors looked to book profits. 

While the short-term resistance of $114.60 was confirmed on May 19, we are still looking to test the low levels of $107. With declining MACD and STO, we can take a more aggressive approach here and set up a long put strategy. 

HD Daily

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Management and risk description

Assuming 1% trade risk on $100,000 portfolio, traders can buy up to $1000 worth of contracts. 


Buy: 1 July 15 120 Put for $9.80
Maximum gain –  unlimited
Maximum loss –  $9.80 or $980 

Entry: enter today at a limit of $9.80

Stop: set a stop of 50% of premium paid or $4.90

Target: price target of $107 or ROI of 50%

Time horizon: short 

— Edited by Gayle Bryant

For more on CFDs click here 

Non-independent investment research disclaimer applies. Read more


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