Here we have a nice bearish trade in Sherwin Williams (SHW). This company manufactures and distributes paint coatings and related products world-wide. Our trader identified a breakdown through a support level – on a day in which the overall markets were also moving lower.
There are many different trading strategies available to take advantage of this type of setup in the options world. This particular trader used a vertical put spread, with strike prices selected from support and resistance areas.
Typically, for the strategy chosen, the risk is the premium paid and our traders aim for a 50%+ return. 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.
NOTE: Chart(s) courtesy of FINVIZ.com.
There are many different trading strategies available to take advantage of this type of setup in the options world. This particular trader used a vertical put spread, with strike prices selected from support and resistance areas.
Typically, for the strategy chosen, the risk is the premium paid and our traders aim for a 50%+ return. 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.
NOTE: Chart(s) courtesy of FINVIZ.com.
