Swing Trade Idea (MGM) – June 25, 2024
Our bullish trade for Tuesday, June 25th is MGM Resorts International (MGM). MGM is part of the Consumer Discretionary Sector, which has performed at 2.71% over the last month, with MGM overperforming relative to its sector at 5.60% over the same period.
MGM bounced off an a of support at $40 and as the Consumer Discretionary Sector is printing gains, we expect to see further upside on this stock, over the duration of the trade. This Credit Spread generates over 39% Premium over the Width.
As a close, if MGM were to trade below $40 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 $2.36 Debit.
