Swing Trade Idea (MGM) – February 02, 2023
OptionsPlay’s bearish trade for Thursday, February 2nd is MGM Resorts International (MGM). MGM is part of the Consumer Discretionary Sector, which has performed at 17.31% over the last month, with MGM overperforming relative to its sector at 24.99% over the same period.
MGM had a strong rally towards a key level around $41, from where it is showing signs of weakness. As this is a counter-trend trade, we believe that MGM will retrace lower as it has reached a point of exhaustion, with the next support at around $37.
As a stop loss, if MGM were to trade above $43 for multiple days, this would invalidate our analysis and suggest cutting losses on the trade. We also recommend cutting losses on this options trade if the value of the vertical spread moves below $0.55.
