I bought a BCS on Home Depot (HD).
music selection: “Crazy” — Kidneythieves
weigh-in: 221.6 (2.4)
Housing and everything related is hot right now. I especially like Home Depot (HD) right now. Thus, I bought 7 bull call spreads at the 285/290 strikes and 16OCT2020 expiry. Unlike the past, only one strike is in the money. With the underlying currently at 286.20, I need the price to rise by 1.30 to break even (0.45%). Likewise, to earn the full profit I need shares to rise to 290 or 1.32%. I think there is a high probability of that with the 61 days the trade will be in force.
I have put 1,750 capital at risk in this trade. A full win would produce 100% profit (1,750) over 61 days or 1,177% annualized. Put another way, I can double my money with a 1.32% rise in the underlying. That is a lot of leverage considering the downside risk is defined.
Devour your prey raptors!
That was nice win on HD,with HD beating results to day.
Price is back between the strikes but I’m still up about 350 dollars.