Swing Trade Idea (AEP) – November 08, 2022
Our bearish trade for Tuesday, November 8th is American Electric Power Company Inc. (AEP). AEP is part of the Utilities Sector, which has performed at -1.48% over the last week, as it is trading around a key level.
AEP formed a lower high at a key level of $90 as it is trending lower. As this level became support and also overlaps with the 21 Day EMA, this is providing a good risk/reward bearish entry.
As a close, if AEP were to trade above $90 for multiple days, this would invalidate our analysis and 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 $154.
