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  • Swing Trade Idea (SAH) – August 17, 2022

    Aug 17, 2022 Swing Options Tips Comments Off on Swing Trade Idea (SAH) – August 17, 2022

    Our bearish trade for Wednesday, August 17th is Sonic Automotive Inc. (SAH). SAH is part of the Retail Sector, which has performed at 20.87% over the last month, while SAH has overperformed this sector by 19.39% over the same period.

    SAH has seen a strong rally over the last week, towards near all-time-high levels. It is currently trading at a key resistance level of $53, from where it is expected to retrace lower as it is over-extended towards the upside. This provides a good risk/reward bearish entry. 

    As a close, if SAH were to trade above $54 for multiple days, this would invalidate our analysis and consider cutting losses on the trade. We also will consider cutting losses on this options trade if the value of the vertical spread moves below $0.47.

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