A bearish bet on a dollar store stock that keeps hitting resistance

In the six month daily chart shown below, we can see that the 50-day simple moving average has been acting as an area of strong resistance. Every time the stock approaches this level, it gets rejected. The 50-day average as of today is currently around $120. And although DG has experienced some upward momentum since mid-October, this upward momentum is now facing resistance once again at the 50-day average.

This is great, because you can construct a $1 wide put spread and risk as little as $50 to make $50 per winning trade. To increase risk, simply add more contracts. Eg. Doing a 50 contract trade would risk $2500 to make $2500. All I need is for DG to drop by $1 by expiration date for this trade to be profitable. Here is the exact trade setup: Buy $120 put Nov 17 expiry Sell $119 put Nov 17 expiry A nice thing about buying ATM (at-the-money) spreads, is that the math becomes very easy.

Mobile police seeking armed man who robbed Dollar General storeIt happened Sunday night on Theodore-Dawes Road. Read more ⮕

Mobile police seeking armed man who robbed Dollar General storeIt happened Sunday night, Oct. 29, at the store at 7519 Theodore Dawes Road. Read more ⮕

2022’s Horror Hit Barbarian is Giving Birth To a Video GamePress X to pull up the AirBnB app and speak with customer service. Read more ⮕

10 True Scary Stories That Will Raise the Hair on Your Neck: Our 2022 WinnersWe asked readers to share your creepiest real-life tales, and you all delivered this year. Here are the best. Read more ⮕

San Diego police investigating fatal downtown stabbing, suspect found deadPat Mueller joined the ABC 10News team as a Digital Content Producer in Aug. 2022. Read more ⮕

More Children Killed In Gaza This Month Than In Conflict Zones For All Of 2022Sanjana is a HuffPost reporter currently based in her native city of Chicago after reporting from Washington, D.C. She covers breaking news and politics, and previously wrote for the AP. You can reach her at sanjana.karanthhuffpost.com or on Twitter at sanjanakaranth. Read more ⮕