Swing Trade Idea (ALC) – August 13, 2024
Our bearish trade for Tuesday, August 13th is Alcon Inc. (ALC). ALC is part of the Health Care Sector, which performed at 0.77% over the last month. ALC performed at -0.64% over the same period.
ALC has been bullish lately but failed to break above recent resistance at around $95. As both ALC and Health Care are pulling back from areas of resistance while the overall market is correcting from new highs, we believe that ALC will continue this pullback over the duration of this trade. We recommend playing a credit Spread that will generate a Premium/Width of over 40% which is an excellent return.
As a close, if ALC 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 above $6.04.
