My Options Trading Pick For Tuesday, April 30, 2024, Is Now Live.

$SPHR is bearish with a wide window to support if It can break down below its 200-day MA. I'm going to risk $345.00 per contract for a potential $586.00 profit, a 169.86% return.

Apr 30, 2024

Technical Summary: The stock has underperformed the market when compared to the S&P 500 over the last 50 trading days. SPHR's chart formation indicates the stock is in a strong downward trend.

Momentum, as measured by the 9-day RSI, is negative. Over the last 50 trading sessions, there has been more volume on down days than on up days, indicating that SPHR is under distribution, which is a bearish condition.

The stock is trading below a falling 50-day moving average which confirms the weak technical condition of SPHR. SPHR could find secondary support at its rising 200-day moving average.

🎯 My target price is $30.69 by expiry and I need to be below $36.55 for the trade to be profitable.

Strategy: Put Vertical $SPHR

Trade Breakdown:

This is a bearish strategy with a limited risk of $345.00 and a limited potential reward of $655.00. This strategy will profit if the stock closes below $36.55 by Jun 21, 2024. There is a 41.93% probability this will happen.

Entering The Trade:

Bid: $3.15 Mid: $3.30 Ask: $3.45 Avg Premium: $3.45

Please note that these prices were taken during market hours. If they change dramatically by the time you read this, use your discretion. Stop Loss at 50% on this trade.

$SPHR Sphere Entertainment Co

Trade Checklist:

Stock Trend: The strategy you have chosen is bearish and SPHR's 1m trend is bearish.

Market Trend: The strategy you have chosen is bearish and currently the S&P 500's 1m trend is bearish.

Earnings Date: Be aware that there is an earnings call on May 8, 2024, which is prior to the expiration of your trade.

Spread & Liquidity: The bid/ask spread of this trade is sizable, it is recommended that you place a limit order near the MID price.

$SPHR Alternative Trade For Level I Accounts:

Trade Breakdown:

This is a bearish strategy with a limited risk of $390.00 and a limited potential reward of $3,610.00. This strategy will profit if the stock closes below $36.10 by Jun 21, 2024. There is a 39.74% probability this will happen.