Vertiv Holdings (VRT) bounced off its 200-day moving average last week and then crossed above the 50-day moving average on Tuesday. **** ysts are bullish on Vertiv stock with an average price target of 336 a share. However, Wednesday morning saw the stock pulling back below its 50-day line. Can it hold recent support?
When it comes to options, we normally look at short-term trades — anywhere from one week to one month. Today, we will look at a slightly longer-term bull put spread.
Longer-term option trades tend to move a little slower than shorter-term trades. That allows more time to adjust or close, but also means a lower annualized return.
As a reminder, a bull put spread is a defined-risk strategy, so you always know the worst-case scenario in advance. This type of trade will profit if Vertiv stock trades sideways or higher, and even sometimes if it trades slightly lower.
With Vertiv trading around 270, if we use the Dec. 18 expiration, we can sell a 230 put and buy a 220 put to set up the bull put spread. That spread is trading around $3.20 a share.
#trades #week
When it comes to options, we normally look at short-term trades — anywhere from one week to one month. Today, we will look at a slightly longer-term bull put spread.
Longer-term option trades tend to move a little slower than shorter-term trades. That allows more time to adjust or close, but also means a lower annualized return.
As a reminder, a bull put spread is a defined-risk strategy, so you always know the worst-case scenario in advance. This type of trade will profit if Vertiv stock trades sideways or higher, and even sometimes if it trades slightly lower.
With Vertiv trading around 270, if we use the Dec. 18 expiration, we can sell a 230 put and buy a 220 put to set up the bull put spread. That spread is trading around $3.20 a share.
#trades #week
3 days ago
