Swing Trade Idea (STX) – May 30, 2024
Our bearish trade for Thursday, May 30th is Seagate Technology Holdings Plc (STX). STX is part of the Technology Sector, which has performed at 7% over the last month, with STX performing at 9.5% over the same period.
As STX is pulling back from a double top at $100 and is still significantly overbought, we expect to see a larger pullback over the duration of this trade. We are playing a Credit Spread that collects a premium of over 36% of the width, which is an excellent risk/reward ratio.
As a close, if STX were to trade above $97 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 $3.76 Debit.
