February 19, 2021 Terry’s Tips Trade Alert – Earnings  Eagle Portfolio

We are adding Home Depot (HD) spreads. HD reports earnings on Feb. 23 before the open. Options are currently pricing in a move that is greater than the average post-earnings move:

BTO 1 HD 01Apr21 272.5 put (HD210401P272.5)
STO 1 HD 26Feb21 272.5 put (HD210226P272.5) for a debit of $4.65 (buying a calendar)

BTO 1 HD 01Apr21 270 put (HD210401P270)
STO 1 HD 26Feb21 270 put (HD210226P270) for a debit of $4.45 (buying a calendar)

BTO 3 HD 01Apr21 282.5 calls (HD210401C282.5)
STO 3 HD 26Feb21 282.5 calls (HD210226C282.5) for a debit of $4.25 (buying a calendar)

BTO 2 HD 01Apr21 287.5 calls (HD210401C287.5)
STO 2 HD 26Feb21 287.5 calls (HD210226C287.5) for a debit of $3.85 (buying a calendar)

BTO 1 HD 01Apr21 290 call (HD210401C290)
STO 1 HD 26Feb21 290 call (HD210226C290) for a debit of $3.55 (buying a calendar)

BTO 2 HD 01Apr21 280 calls (HD210401C280)
STO 2 HD 26Feb21 280 calls (HD210226C280) for a debit of $4.20 (buying a calendar)

BTO 2 HD 01Apr21 277.5 calls (HD210401C277.5)
STO 2 HD 26Feb21 277.5 calls (HD210226C277.5) for a debit of $4.20 (buying a calendar)


Be prepared to change this (these) price limit(s) by $.05 or more in order to get an execution.

Happy trading.

Terry