Here is another great trade from one of our Mavericks: A trade setup in Norfolk Southern Corp. (NSC), a railroad company. This stock's chart is in a very common bearish charting pattern (one of many covered in Maverick Trading's curriculum).
There are many different trading strategies available to take advantage of this type of setup in the options world. In this case, our trader's personal Trading Plan called for a Diagonal Put Spread.
Typically, for the strategy chosen, our traders aim for a 10-40% return of capital placed into the trade. At Maverick Trading, we pride ourselves on our community of traders. Every week in our live Trading Room, our traders share their favorite new trade setups (like the one above from last week) with all of their fellow Maverick traders.
