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Swing Trade Idea (MGM) – January 28, 2022

Our bearish trade for Friday, January 28 is MGM Resorts International (MGM). MGM is part of the Discretionary sector that has performed at -15.08% over the last month, with MGM performing at -8.14% over the same period. 

MGM recently broke below the $43 support turned resistance level and rejected this level on the retest which provides a good risk/reward bearish entry. Both 1M and 6M trends are bearish. 

As a close, if MGM were to trade above $43 for multiple days, this would invalidate our analysis and focus on cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves below $3.52.