Trade of the Day: Home Depot Inc (HD)

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The Home Depot Inc (NYSE:HD) earnings report was full of good news, but the stock sold off anyway. The “buy the rumor, sell the news” pattern is common during earnings season, and we suspect that was what hurt HD on Tuesday.

The negative reaction seems overdone compared to the actual numbers, and with the FOMC meeting minutes out of the way, we feel that interest rates are unlikely to continue rising and may fall in the short term. This may not be ideal for all sectors, but housing and home-improvement should benefit from those factors this quarter. We like HD calls at this level with a target near the prior highs.

‘Buy to open’ the HD September 155 Calls (HD170915C00155000) for a maximum price of $1.20.

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Article printed from InvestorPlace Media, https://investorplace.com/2017/08/trade-of-the-day-home-depot-inc-hd/.

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