Swing Options Tips (MGM) – March 16, 2023
Our bearish trade for Thursday, March 16th is MGM Resorts International (MGM). MGM is part of the Consumer Discretionary Sector, which has performed at -6.45% over the last month, with MGM at -6.98% over the same period.
MGM is pulling back after a 10 month uptrend into an area of resistance. As it broke below a key level at 41, and also below the 21 Day and 55 Day EMA, we believe that this pullback will continue. The next support is at $36.
As a close, if MGM were to trade above $41 for multiple days, this would invalidate our analysis and will consider cutting losses on the trade. We also will consider cutting losses on this options trade if the value of the vertical spread moves above $2.58.