TRADE ALERT: Prudently trimming back our Home Depot call exposure after a nice gain
After you receive this special alert, we will sell half of the Home Depot (HD) Jan 2018 155.000 calls (HD180119C00155000) call position that is currently trading near 9.50, more than double our initial purchase price of 4.49.
We recognize we are still days away from the brunt of Hurricane Irma hitting the Southeast, but we also look to remain prudent investors. By selling half the position in our Home Depot calls, the Select List will book some hefty profits, but it will have continued exposure to the calls to capture the additional upside associated with the fallout from both Irma and Harvey. As we make this trade, we will also boost our stop loss to 8.00 from 5.00, which should lock in a minimum return of 78% on the remaining calls.
- We will sell half of the Home Depot (HD) Jan 2018 155.000 calls (HD180119C00155000) call position that is currently trading near 9.50, more than double our initial purchase price of 4.49.
- The remaining portion of the position offers us continued exposure to Home Depot calls to capture additional upside as the impact of Hurricane Irma is added to that of Harvey.
- As we make the trade, we are also boosting our stop loss on the remaining HD calls to 8.00 from 5.00
