.

Swing Trade Idea (MCO) – February 15, 2024

Our bearish trade for Thursday, February 15th is Moody’s Corp. (MCO). MCO is part of the Technology Sector, which traded at 4.71% over the last month, with MCO underperforming at -3.99% over the same period.

Recently, MCO formed a multi-year double top $400 from where it started to pull back. The pullback was aggressive and MCO broke below a key area of support of $370, from where further downside can be expected. We are playing a Credit Spread that provides a premium/width of over 36% if MCO does not trade higher than its current price point of $366.

As a close, if MCO were to trade above $370 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 $7.30 Debit.