Today we are applying a Bear Put on AMP which has broken a triangle pattern.
Analysis:
AMP is trading at $2.14.
AMP is trading in a strong downtrend and has broken support today, therefore breaking the descending triangle pattern. This provides good bearish entry signals. There is plenty of room to the next support, and with AMP’s troubles it makes sense to do a bearish trade.
A Bear Put is suitable because often AMP can track sidewards for good periods of time. With a Bear Put, time decay can be positive, which means not only do you profit from sidewards movement, but you have the flexibility to wait for the fall.
