Shorting HD with naked $65 puts expiring in January

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I will be looking for Home Depot (HD) to open up tomorrow and hopefully revisit its 52 week high. If I can get January 65 puts below $2.00 that will be the set up I’m looking for to step in front moving ¬†train.

The plan is to buy only five contracts to open a position and then add to that position with another 10 contracts if HD continues climbing higher and the put option price falls to $1.00 and then the stock goes up and the put option price  falls lower before Santa gets here, I will buy a third group of 15 put contracts before the end of the year.

The theory is that HD is going to touch $60 before mid-January.

Put the Hammer down.

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