In the trader tip video below, Brian is having a look at HD (The Home Depot) stock. Looking at the charts, HD has been in a downtrend for most of 2022. It is off about 27% or so from its highs back in December and January timeframe. Longer term, HD seems to be an attractive company at an attractive price.
What we would like to do is get ourselves a trade structure that will allow us some leeway to stay in the trade for a while. And ride out any shorter terms ups and downs pretty well. We are looking at doing a call diagonal spread, going out to December or January, and buying an “at the money” call.
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Disclaimer: None of this material is meant to be construed as investment advice. It is for education and entertainment purposes only. The video is accurate as of the posting date but may not be accurate in the future.
