Kevin Kelly's Bullish Home Depot Options Trade

Kevin Kelly, the managing partner at Kelly & Co., spoke on Bloomberg Markets about a bullish trading idea in Home Depot Inc HD.

He said the company has increased its guidance for the rest of the year and it has $8 billion in share buybacks. Kelly wants to get a long exposure by purchasing shares at current market price and he also wants to sell the May 175 call for $4.65 against the long stock position. With the short call, he gets a 2.77 percent protection on the downside and if the stock trades higher, he is going to cap his selling price at $179.65 or 6.90 percent above the current market price.