.

Swing Trade Idea (GPC) – September 12, 2023

Our bearish trade for Tuesday, September 12th is Genuine Parts Company (GPC). GPC is part of the  Consumer Discretionary Sector, which has performed at 1.76% over the last month, with GPC underperforming relative to its sector at -4.78% over the same period.

GPC is in a downtrend and failed to break above a key area at $155, from where it broke below support at $150. Both the 1M and 6M trends are bearish and it has a Relative Strength of 3 (out of 10) which underscores our bearish thesis on this trade. This trade has a return of 40% of the premium/width, which is an excellent risk/reward ratio.

As a close, if GPC were to trade above $155 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 $4.04.