Swing Trade Idea – August 09, 2022
OptionsPlay’s bearish trade for Tuesday, August 9th is First Solar Inc. (FSLR). FSLR is part of the Utilities Sector, which is showing signs of slow-down as it rallied into an area of resistance.
FSLR recently had a strong rally into an area of resistance at $108, and it is currently in an over-bought condition. This provides a good risk/reward bearish entry.
As a stop loss, if FSLR were to trade above $108 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 moves above $8.74.
