.

Swing Trade Idea (M) – February 27, 2024

Our bullish trade for Tuesday, February 27th is Macy’s Inc (M). M is part of the Consumer Discretionary Sector, which traded at 6.41% over the last month, with M performing at 2.55% over the same period.

M has been consolidating and trading rangebound since December 2023. It has respected support at around $18.50 with the potential upside being around $21. With a strong sector and increasing strength, we believe that M will likely not trade lower over the duration of this trade. We will therefore capitalize on a bullish Credit Spread to collect a 33% premium/width.

As a close, if M were to trade below $18 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $2.64.