Swing Trade Idea (HD) – June 13, 2023
OptionsPlay’s bearish trade for Tuesday, June 13th is The Home Depot, Inc. (HD). HD is part of the Consumer Discretionary Sector, which has performed at 9.98% over the last month, with HD underperforming relative to its sector at 4.58% over the same period.
HD traded into an area of resistance at a key level of around $300. As it is showing signs of weakness as it is trading around this point, we believe that HD will pull back from this level over the duration of this trade, with the next support at $280 and then $270.
As a stop loss, if HD were to trade above $305 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We also will consider cutting losses on this options trade if the value of the vertical spread moves below $0.94.