You have just invested in one share of Home Depot Inc. (HD) but learned that the company has missed its profit estimates due to the wet winter weather. Therefore, you expect its stock price may drop but dont think the decrease will persist or be large in size. Therefore, you plan to use the Covered Call strategy to reduce your loss. This way, you do not need to sell the stock to cut losses. HD stock price is currently at $180 per share. Suppose you have the choice to buy or write the following options:

A put option on one share of HD stock with a strike price of $180 and a premium of $10.0

A call option on one share of HD stock with a strike price of $180 and a premium of $15.0 Describe what you need to do to implement this Covered Call strategy,

i.e., choose the correct option to use and indicate whether you should buy or write it. And, find the break-even price, maximum possible profit, and minimum possible profit.