To receive further updates on this United Parcel Service, Inc. (NYSE:UPS) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of Power Options Weekly today.
Our indicators are giving bearish readings this week, a downgrade from neutral readings last week. There has been a lot of political news this week; President Trump was elected to “drain the swamp,” but it now seems that the swamp is trying to drain him instead.
Now, the reason that this is important for us as traders is that it is starting to have a huge effect on the market, as we saw this week when the Dow dropped nearly 400 points. The new controversies, whether they turn out to be of merit or not, make the odds that Trump’s administration will be able to move forward with its tax reform and health care bills much weaker.
Even aside from the political situation, we are still in the historically bearish month of May. I am personally maintaining a neutral stance at this point, and I wouldn’t be surprised to see some of this volatility continue further into the summer. For that reason, I am recommending a bearish trade today, involving United Parcel Service, Inc. (NYSE:UPS).
Buy to open the UPS Jul 100 Puts (UPS170721P00100000) at $1.45 or lower.
Follow our Facebook page to receive each Trade of the Day direct to your News Feed.
InvestorPlace advisor Ken Trester brings you Power Options Weekly, which delivers 5 new options trades and his latest trading advice to you each Friday. It’s the perfect ‘bridge’ between investing in ordinary stocks and the turbocharged world of options trading.
Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990. Try Power Options Weekly today and receive 2 weeks for the price of 1 for only $19.95.
