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Swing Trade Idea (PLUG) – February 09, 2024

Our bullish trade for Friday, February 9th is Plug Power Inc. (PLUG). PLUG is part of the Technology Sector, which traded at 8.48% over the last month, with PLUG underperforming at -0.24% over the same period.

PLUG has been underperforming for several months now and found support at around $4 as it is oversold. We expect to see a bounce higher from this level, and as such we will be playing a Credit Spread with limited risk and a 50% premium/width, which is an excellent risk/reward ratio.

As a close, if PLUG were to trade below $4 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 $1.02 Debit.