Swing Trade Idea (ABNB) – May 9, 2024
Our bearish trade for Thursday, May 9th is Airbnb Inc. (ABNB). ABNB is part of the Consumer Discretionary Sector, which has performed at -1.95% over the last month, with ABNB performing at -2.93% over the same period.
ABNB as well as its sector, the Consumer Discretionary Sector, are pulling back from recent highs and to date has failed to regain previous momentum. With ABNB still over-extended to the upside, we expect to not see further upside over the duration of this trade. We are, therefore, playing a Credit Spread that would provide us with almost 35% premium on the width.
As a close, if ABNB were to trade above $165 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 $10.40 Debit.
