Today we are applying a Bear Put on Woolworths Group Ltd (WOW)
WOW is trading at $38.30
Technically, WOW has been trading in a small downtrend since its high mid-August. Recently it found support and consolidated near $39. Today has it breaking lower. There is plenty of room to the next support around $37.50.
Fundamentally, WOW should continue to fall out of favour for reopening stocks as Victoria and NSW remain on track towards reopening vaccination thresholds.
To trade this, we suggested a Bear Put spread to our clients. This strategy profits from bearish movement and sideward movement, so if WOW goes through another small period of consolidation, not only can we wait for the bearish movement we can profit whilst doing so.