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Today, we’re opening a new bullish trade on Home Depot (NYSE:HD). HD just completed a bullish “flag” continuation pattern, as the stock has broken above the resistance level that marked the previous all-time high it established in mid-May. This is a great opportunity to jump into this trade with renewed bullish momentum.
HD has been a strong buy in the aftermath of hurricanes Harvey and Irma, as residents (and the construction crews they hire) affected by those hurricanes are likely to spend a lot of their insurance money at HD.
This is going to be a long process and should provide HD with sustained revenue and earnings growth through the rest of the year. Based on the height of the bullish move that led into the latest consolidation range on HD’s stock chart, we expect the stock to move up to $165 during the coming month.
‘Buy to open’ the HD November 165 Calls (HD171117C00165000) for a maximum price of $3.10.
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InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, 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.
