Home Depot broke out of a nice base recently and has been showing quite a bit of strength. I decided to take a chance on the May 33 calls (slightly out of the money). The stock is in a nice flag pattern and has not shown much weakness even on down market days. The only concern is the Call related option resistance at the 33 level. But I figured if we get to 33 fairly soon, a 25-40 percent return is not out of the question. I also put in a simultaneous order to sell 5 (out of the 10) contracts at 1.30 as a Good Till Cancel order. Also, a May expiration date of May 21 gives the stock about 6 weeks to make its move. It just felt like the price was right :-)
On a side note, EK is trying to move out of a base. I was hoping it wouldn't do that until after the April expiration, but no such luck. I might have to add to this position soon, as it looks like there can be a big move ahead.
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