How to Pocket an Easy 100% Profit on Home Depot

It’s no surprise right now that the brick and mortar stores are on their last legs – all you have to do is follow the endless stream of upcoming store closures to know that.

The real problem is that the media heads are scaring everyone into thinking they need to dump their retail stocks.

But not all retailers are suffering…

Now last month, I told you why home improvement stores are faring better than others. I also told you that Home Depot (HD) is the best home improvement stock to buy.

And today, I’m going to show you exactly how you can make an easy 100% on this stock – no matter how bad the rest of the sector gets.

Using the Fastest-Growing Moneymaker in the World to Play Home Depot

The Consumer Discret Sel Sect SPDR ETF (XLY) is often the go-to ETF to measure how retail and related consumer stocks are performing. This means that home builders are lumped into it, even though they aren’t the heaviest weighted stocks. But although the retail sector is bearish overall, retailers of home improvement goods are actually doing quite well. And as I mentioned, Home Depot (HD) is doing particularly well.

HD already reported strong earnings per share (eps) and revenue numbers, with its latest eps at  $1.44 on revenue of $22.2 billion (consensus estimates were for an eps of $1.33 on a revenue of $21.7 billion). Take a look at its steady upward price movement since last October:


And now, it’s among the top 10 consumer discretionary stocks near their 52-week highs…


Now when it comes to capturing profits, long calls or debit call spreads is the quickets and easiest way to go.

Based on the price patterns I’m seeing, HD typically moves higher heading into May, as spring cleaning and home improvement projects take front and center with many people. Therefore at-the-money call spreads, with May expirations could be your best bet right now (such as the HD May $145-$150 call spread). Not only is the cost low to get in – it’s also currently priced in a way that could deliver you an easy double.

To your continued success…

Tom Gentile

P.S. Each and every week, I send my Money Calendar members new opportunities that could double their money (or better). To learn more, click here.

8 Responses to “How to Pocket an Easy 100% Profit on Home Depot”

  1. George Pledger

    It seems like we are getting so much so fast that I cannot keep up. Pretty soon I will need a secretary just to keep up on all the stuff I have or have access to at Money map. Many thanks.

  2. Allen MacDiarmid

    You said that long calls or debit call spreads are the way to go and then suggested a specific call spread but not a long call. I am not allowed to make spreads, so what about a specific long call as well?

  3. Main concern is how the various short term items that you have mention i.e. oil, interest rate, etc. will have on your recommendations. You can look at the current and see how these have been affected.
    Also, where our accounts do not allow spreads (Canada registered accounts) would there be an alternative recommendation for a call or put.

  4. Agree and have the same question… if you have an account that does not allow custom or advanced options trading – what other ideas can you offer that uses simple puts and calls? Thank you.

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