S&P 500 Market Outlook: Neutral
Bullish Trade: TMUS $83.12 – Communication
OptionsPlay’s bullish trade for Tuesday, March 31st is T-Mobile (TMUS). TMUS is part of the Communication Sector (XLC). XLC has declined 12.62% lower over the past month and its 1m and 6m trend turned bearish on March 5th but recently broke back above its $44 resistance level.
T-Mobile’s 1m and 6m trend turned neutral on March 26th and recently bounced higher off its $77 support level. With a technical score of 9 (out of 10), TMUS is a strong stock that is starting to turn lower.
As a stop loss, if TMUS were to trade below $77 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 put increases above $12.00.