Kevin Kelly's Long Home Depot Trade

Kevin Kelly of Recon Capital Partners shared with the viewers of Bloomberg Markets his trading idea in Home Depot Inc HD.

He wants to take a long stock position at the current stock price and he wants to sell the September 165 call against it. Kelly explained that the trade offers a 7 percent annualized yield, if the stock goes nowhere. He thinks it's better to have this position than to be in the high yield stocks, because the high yield stocks could get hurt in case of the interest rate hike.