DailyPlay – Opening Trade (MTCH) – June 13, 2022

View MTCH Trade

Strategy Details

Strategy: Short Call Vertical Spread

Direction: Bearish

Details: Sell to Open 3 Contracts July 22, 2022 $77/$88 Call Verticals @ $4.02 Credit.

Total Risk: This trade has a max risk of $2,094 (3 Contracts x $698 per contract).

Trend Continuation Signal: This is a Bearish trade on a stock that is experiencing a bearish trend. 

1M/6M Trends: Bearish/Bearish

Technical Score: 2/10

OptionsPlay Score: 104

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that if there is a multi-leg option strategy, it should be entered as a single trade. 

Investment Rationale

Match Group Inc. (MTCH) is currently in a clear bearish trend and the price is currently trading at the top of this downwards trend formation. This provides an excellent risk/reward for downwards exposure. Its recent outperformance relative to its sector, the Technology Sector, could indicate that we are now entering a period of underperformance relative to its sector. Despite Revenue growth on this stock, almost no Earnings growth has been seen lately, indicating that this stock is still over-valued.