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Swing Trade Idea (SPG) – February 22, 2024

Our bearish trade for Thursday, February 22nd is Simon Property Group, Inc. (SPG). SPG is part of the Real Estate Sector, which traded at -0.80% over the last month, with SPG overperforming at 5.82% over the same period.

SPG has been overperforming relative to its sector and has been very bullish since November 2023. As it traded into an area of resistance at $150 and is extremely overbought, we expect to see a pullback to lower levels. We will play a Credit Spread to collect a premium almost 40% of the premium/width, providing us with an excellent risk/reward ratio.

As a close, if SPG were to trade above $151 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 $4.30.