Swing Trade Idea (ALV) – May 16, 2023
OptionsPlay’s bearish trade for Tuesday, May 16th is Autoliv, Inc. (ALV). ALV is part of the Industrial Sector, which has performed at -0.87% over the last month with ALV underperforming relative to its sector at -5.15% over the same period.
ALV is in a downtrend and recently made a higher low at the top of this channel. As both the 1M and 6M trends have already turned Neutral, we believe that resistance at the top of this channel will be respected, and that ALV will trade lower over the duration of this trade.
As a stop loss, if ALV were to trade above $90 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $4.60.