ACN Bullish Opening Trade Signal

Strategy Details

Strategy: Short Put Vertical Spread – Bullish

Details: Sell to Open 3 Contracts July 29, 2022 $280/$270 Put Verticals @ $3.80 Credit.

Total Risk: This trade has a max risk of $1,860 (3 Contracts x $620 per contract).

Counter Trend Signal: This is a Bullish trade on a stock that is experiencing a bearish trend. 

1M/6M Trends: Bearish/Bearish

Technical Score: 3/10

OptionsPlay Score: 108

View ACN Trade

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

With a possible triple-bottom trading low in place in Accenture (ACN) near $270, we’re going to look to enter a short July 29^th $280/$270 put spread today for no less than the $3.80 that it closed at yesterday (based on 4 pm ET mid-prices).  That’s 38% of the spread differential.

Its quarterly earnings come out on the 28^th, so we will be out of it before that release.  New 2022 lows would have me sell no less than half right then and there, too.

ACN – Daily