Trading a Possible Reversal in PRGO
Stocks don’t move up or down for ever. Even a stock that is trending up or down will have times when it retraces or changes direction.
PRGO is a stock that in my opinion looks like it could be traded either to the downside or to the upside. The current trend in the stock is down, so short term it looks like buying a put could be a valid strategy. If you look longer term the stock looks like it could be making a bottom at the current levels and looking to make a move upwards over the next few months. The stock could be bottoming as the downward momentum has begun to slow, and the trend in price has begun to flatten out. We can also notice that the weekly moves have become smaller also potentially signaling a bottom.
An options strategy to consider could be to buy a short term put, or to buy a longer term call.
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