Kevin Kelly's Home Depot Options Trade

On Bloomberg Markets, Kevin Kelly of Recon Capital Partners recommended a long position in Home Depot Inc HD.

He explained that implied volatility in Home Depot is elevated and he believes it would be a good idea to sell puts in the name. Kelly wants to sell the April 140 put for $2.05. If the stock trades lower, he is going to have to buy it at $137.95, which would, in his opinion, be a great cost basis.