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Today, we’re opening a new bearish trade on Newell Brands Inc. (NYSE:NWL).
The market was back up following last Friday’s positive employment news, but volatility still seems likely to rise in the short term. As uncertainty persists, there are a few companies showing striking signs of distress.
Newell’s Chief Financial Officer (CFO) has announced retirement after only two years on the job, which is usually a bad sign. Considering the company’s debt load and shareholder fights with management, we don’t see much of a likelihood of short-term improvement.
Therefore, we recommend puts on the stock in anticipation of more bad news to come over the next two or three weeks.
‘Buy to open’ the NWL July 23 Put (NWL180720P00023000) for a maximum price of $1.00.
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