IYT short idea?

thinkortrap
thinkortrap

This chart doesnt look fantastic... the option chain doesnt look so hot either.

I think going to individual names within the sector such as FDX UPS is a better option. I think shorting FDX since it is a lagging name under the 50dma while UPS is above 50dma is a better short idea.

Im watching for continued weakness to get a 25dte put spread with $5 width.
Most likely the 207.5 and 202.5 spread trading around 2.00

Here is the FDX targets. Measured move and fib extentsions line up around the 195 area for a longer short swing.

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Comments

  • JoshWinter
    JoshWinter
    Posts: 275

    Nice @thinkortrap. I like #FDX short myself but would want to see $200 area get tested before I enter a short. With put spreads though and options you get time on your side so dont have to be as accurate with your entry and do not have to worry about taking a premature SL either. The fedex options are pretty liquid too so not much slippage will occur. Chart below.

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