Sell Home Depot Puts for 50% Gain

By Linda McDonough • August 14, 2018

Sell to close the October 19, 2018 put on Home Depot (NYSE:HD) with a strike price of $190 at $5.25 or higher. Symbol (HD181019P190) for a 50% plus gain.

Despite beating earnings estimates, Home Depot is cautious on the second half and mentioned that comp sales have decelerated each month in the quarter.

As always, let me know how you did on this trade by taking this short survey.

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Asjad Shamim

08/14/18 ‐ 9:42am ET August 14, 2018 at 9:42am ET

Hi LInda,
Quick question… Have been monitoring HD since the opening today and did not happen to see the price crossed $5 limit yet. Perhaps i missed it for a short window.
Should we wait or sell what it stands today?

Eistha

08/14/18 ‐ 9:46am ET August 14, 2018 at 9:46am ET

I had the same question… the position is still in the green but not by 50%. Should we wait for the price to go up or book the current profits?

Linda McDonough

08/14/18 ‐ 9:47am ET August 14, 2018 at 9:47am ET

I would suggest booking the profits- I don’t foresee the stock running up much more but the market is feeling pretty strong.

Jeff L.

08/14/18 ‐ 9:49am ET August 14, 2018 at 9:49am ET

Sold HD thank you Linda

Asjad Shamim

08/14/18 ‐ 9:50am ET August 14, 2018 at 9:50am ET

Thanks Linda for the suggestion.

Closed @ $4.25 @ 8:50am

Carl

08/14/18 ‐ 9:51am ET August 14, 2018 at 9:51am ET

Sold to close HD @ $4.40

Thank You Linda

Ted

08/14/18 ‐ 9:55am ET August 14, 2018 at 9:55am ET

BTO 3.16 on aug 8
STC 4.75 at 9:35 am

50% gain

Thanks Linda!

Phil L.

08/14/18 ‐ 10:17am ET August 14, 2018 at 10:17am ET

Sold HD at 4.40 average

Thanks Linda

Chris Stubbs

08/14/18 ‐ 10:29am ET August 14, 2018 at 10:29am ET

Closed HD at $4.10. Profit on position 25.8%. But not 50%…..

Chris Stubbs

08/14/18 ‐ 10:31am ET August 14, 2018 at 10:31am ET

Very good profit for 6 days

Joseph Lipari

08/14/18 ‐ 10:40am ET August 14, 2018 at 10:40am ET

thanks Linda….

Karl

08/14/18 ‐ 10:49am ET August 14, 2018 at 10:49am ET

Sold just for $3.40. Only little gain! The alert came too late!

Eistha

08/14/18 ‐ 8:00pm ET August 14, 2018 at 8:00pm ET

I don’t rely on text alerts, I typically check the site on my phone periodically on the phone. Any new alerts show up as a blue bar on the top.

Paul

08/14/18 ‐ 11:00am ET August 14, 2018 at 11:00am ET

Closed at $4.40. Thank You Linda.

Dane Barlow

08/14/18 ‐ 11:06am ET August 14, 2018 at 11:06am ET

Yup, alert too late. Still don’t have the email one. HD puts have crashed. $3.60 now. About 7% gain. UGH, Linda.

Doyle Mccullar

08/14/18 ‐ 11:39am ET August 14, 2018 at 11:39am ET

Have been monitoring the HD puts and it’s in the green by 11% And the sell price is around 4$ ? This alert seems flaky.

Doyle Mccullar

08/14/18 ‐ 11:44am ET August 14, 2018 at 11:44am ET

Many of us are not receiving your alerts early enough Linda.

Linda McDonough

08/14/18 ‐ 11:54am ET August 14, 2018 at 11:54am ET

I am equally frustrated over the delay in the text alerts and have a call into the IT department to see what can be done about that.

In the meantime, the stock is partly trading with the strength of the overall market. The puts do not expire until October so if you are not filled today, I do think you’ll have opportunities later.

That said, I do think most subs have a gain in these puts. I am typically conservative with options and like to book a gain when it is in hand.

Carl

08/14/18 ‐ 1:50pm ET August 14, 2018 at 1:50pm ET

Greed Is our enemy. I’ll take this gain any day. Thank You for your wisdom and giving me this opportunity. A win is a win. Keep them coming.

John N

08/14/18 ‐ 12:04pm ET August 14, 2018 at 12:04pm ET

I too did not get the text alert (asked to be signed up to it early last week)
CLOSED HD @ $3.26 (Bought at $4.34) 24.8% – I’ll take it!

John N

08/14/18 ‐ 12:06pm ET August 14, 2018 at 12:06pm ET

— that should be BTO $3.26 – STC @ $4.34!!!!!

Daniel Long

08/14/18 ‐ 12:20pm ET August 14, 2018 at 12:20pm ET

HD BTO 3.30
STO 4.31
Profit 31% in 6 days.
Thanks.
DL

Abhi A

08/14/18 ‐ 4:24pm ET August 14, 2018 at 4:24pm ET

Bought at 3.20. Closed at 4.70. Thanks.

Donald Lewis

08/17/18 ‐ 1:24pm ET August 17, 2018 at 1:24pm ET

I’m new to this and have a question.

I purchased the HD Oct 19 Put @$3.23 share
When alert came through to sell @$5.75 I did so and the order has not been fulfilled as of this date. Do I lower the price or continue to wait and see what happens?

Linda McDonough

08/20/18 ‐ 6:58am ET August 20, 2018 at 6:58am ET

Donald,
Unfortunately, the puts are well below the suggested $5.25 price. I am not sure if it is a typo or if you misread the original alert. As an editor, I am prohibited from providing specific advice to subscribers. I would note that I suggest a $.05-$.25 band around the suggested entry and exit prices on options as they move around so quickly, especially when there is news on the underlying stock.
As I mentioned in the alert, unfortunately, the HD numbers were not as bad as expected so I am not confident the stock will dip back down below the $190 strike. The options do not expire until October, however, so there is a chance it drops during an overall market sell-off.
I will do my best to be emphatic when a sell alert is very time sensitive.
Best,
Linda

Luis FV

08/21/18 ‐ 3:20pm ET August 21, 2018 at 3:20pm ET

I was not filled last week on the HD option; I sold it today at market value.
I did get filled in the LOW option for the recommended premium last week.

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