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Today we are applying a Bear Put on Tabcorp Holdings Limited (TAH).

Analysis:

TAH is trading at $4.64

TAH has been trading in a downtrend since its highs in October last year. Recently, it returned to the downtrend line and today shows it rebounding off it. This helps indicate it is ready to continue the downtrend and head back towards key support at $4.50.

TAH can be a very volatile stock, with its daily movements being hard to predict. Instead of trading a straight bearish trade, we can instead look at a Bear Put spread.  Bear Put spreads allow us to take advantage of not just bearish movement, but also sidewards movement as the strategy can benefit from time decay. This ultimately brings a greater flexibility to our trading as we can profit from bullish and sidewards movement.