Home Depot 420C Call Setup– Big Move Expected on Earnings
# 🛠️ HD Earnings Options Play – 8/22 BMO
📊 **Market Context**
* Revenue Growth: +9.4% TTM 📈
* Gross Margin: 33.3%, Operating Margin: 12.9%, Profit Margin: 9%
* Forward EPS: \$15.60, Consensus Buy Rating
* Technical Momentum: +7.7% price drift past 2 weeks, key support \$380 / resistance \$420
* Options Flow: Call-heavy volume at \$420 strike, moderate bullish skew
* IV Rank: 65%, priced for \~3.5% post-earnings move
---
## 🎯 Trade Setup (Pre-Earnings Call)
* **Instrument**: HD
* **Direction**: CALL (LONG)
* **Strike**: \$420.00
* **Expiry**: 2025-08-22
* **Entry Price**: \$0.83
* **Profit Target**: \$3.32 (\~300% potential)
* **Stop Loss**: \$0.42 (50% of premium)
* **Size**: 2 contracts
* **Confidence**: 75%
* **Entry Timing**: Pre-earnings close
* **Earnings Date/Time**: 8/22 BMO
* **Expected Move**: \$5.00
---
## 🧠 Key Notes & Risk Management
* **Position Sizing**: Limit exposure to manageable portfolio risk
* **Exit Scenarios**:
* Profit Target → \$1.66 or \$3.32
* Stop Loss → \$0.42
* Time Exit → Close within 2 hours post-earnings if neither triggered
* **Gamma & Volatility Risk**: Moderate due to pre-earnings timing
---
# ⚡ HD 420C EARNINGS PLAY ⚡
🎯 Entry: \$0.83 → Target: \$3.32
🛑 Stop: \$0.42
📅 Exp: 8/22 BMO
📈 Bias: Moderate Bullish (75%) 🐂
---
📊 **TRADE DETAILS JSON**
```json
{
"instrument": "HD",
"direction": "call",
"strike": 420.00,
"expiry": "2025-08-22",
"confidence": 75,
"profit_target": 3.32,
"stop_loss": 0.42,
"size": 2,
"entry_price": 0.83,
"entry_timing": "pre_earnings_close",
"earnings_date": "2025-08-22",
"earnings_time": "BMO",
"expected_move": 5.0,
"iv_rank": 0.65,
"signal_publish_time": "2025-08-18 14:00:30 UTC-04:00"
}
```
