Home Depot (HD) Offering Possible 7.53% Return Over the Next 9 Calendar Days

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Home Depot’s most recent trend suggests a bullish bias. One trading opportunity on Home Depot is a Bull Put Spread using a strike $187.50 short put and a strike $182.50 long put offers a potential 7.53% return on risk over the next 9 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $187.50 by expiration. The full premium credit of $0.35 would be kept by the premium seller. The risk of $4.65 would be incurred if the stock dropped below the $182.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Home Depot is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Home Depot is bullish.

The RSI indicator is above 80 which suggests that the stock is in overbought territory.

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