After Jim Cramer pumped Home Depot (HD) well into overbought territory, we went short with the HD November 2014 87.50 put around $1.70.
Today, after pulling back, those puts now trade at $2.20.
If you’re happy with the gain, exit half today to secure it. We’re holding the second half for a bit longer, believing HD will pull back a lot more from overbought MACD and RSI.
Also, just the other day, we issued a buy on the DDD January 2015 55 calls at $3.10. Today, those are up to $3.35 and climbing, as the underlying stock moves up $1.50 on the day today.