.

Swing Trade Idea (TTD) – February 20, 2024

Our bearish trade for Tuesday, February 20th is Trade Desk Inc (TTD). TTD is part of the Technology Sector, which traded at 3.53% over the last month, with TTD overperforming at 36.71% over the same period.

Due to an earnings announcement on Friday, TTD gapped higher from the $75 mark to $89. As this puts TTD in an overbought state we expect to see a pullback to lower levels. The $89 mark is also a major key area of resistance. As this is a counter-trend trade, we expect to see TTD trading lower to close the gap, over the duration of this trade.

As a close, if TTD were to trade above $92 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 below $1.61 Credit.