Trade of the Day: Home Depot Inc (HD)

This group is a beneficiary of stagnant interest rates

By John Jagerson and Wade Hansen, Editors, SlingShot Trader

To receive further updates on this Home Depot Inc (NYSE:HD) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of SlingShot Trader today

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.

Follow our Facebook page to receive each Trade of the Day direct to your News Feed — and join the conversation.

You can learn more about identifying price patterns and using them to project how far you think a stock is going to move in our Advanced Technical Analysis Program.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.

Most recently, John and Wade are co-options strategists of Turbo Trader Live — a live, interactive trading room service that runs two hours every trading day the market is open. Turbo Trader Live focuses on long call and put options, as well as long and short vertical spread strategies. Find out how to get in on the live trading action and start making real profits by clicking here.

Article printed from InvestorPlace Media,

©2018 InvestorPlace Media, LLC