S&P 500 Market Outlook: Neutral
Bearish Trade: AMD $45.38 – Semiconductor
OptionsPlay’s bearish trade for Wednesday, March 11th is AMD (AMD). AMD is part of the Semiconductor Sector (SOXX). SOXX has declined 18.16% lower over the past month and its 1m and 6m trend turned bearish on March 6th and is just bounced lower off its $225 resistance level.
AMD’s 1m and 6m trend turned bearish on Marc 5th and recently bounced lower off its $46.50 resistance level. With a technical score of 10 (out of 10), AMD is a strong stock that is starting to turn lower.
As a stop loss, if AMD were to trade above $45.50 for multiple days, this would invalidate our analysis and suggest cutting losses on the trade. We also recommend cutting losses on this options trade if the value of the vertical spread declines below $2.45.
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