Bearish – XRT $ 45.15 – Retail
The idea presented is the opinion of the Options Action staff and not a recommendation by OptionsPlay.
On Friday’s Options Action, the crew analyzed the performance of Retail stocks. XRT has underperformed the S&P500 for almost 5 years was recently rejected at a major bearish trendline. Coupled with an overbought market and extremely weak relative strength, the crew expects a pullback in retail stocks. Expecting XRT to pullback, Dan Nathan suggests buying an April 45/41 Put Vertical for a $1.00 Debit. As of Friday’s close, these puts were trading at a $0.98 Debit.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: XRT Options Action Video