Chemed Corporation CHE Stock & Option Trade Ideas

The technical analysis for CHE indicates a bearish trend based on the following factors:

• MACD: The MACD is consistently below the Signal Line, indicating a bearish momentum.
• RSI: The RSI has been fluctuating but generally staying below the overbought threshold of 70, suggesting a bearish sentiment.
• Bollinger Bands: The price has consistently been below the middle band of the Bollinger Bands, indicating a downtrend.

Based on the bearish trend, here are some potential stock and option trading strategies for CHE:

• Stock Trade: Consider short-selling CHE stock, expecting the price to decrease further. Place a stop-loss order above key resistance levels to manage risk.
• Option Trade: Purchase put options on CHE to profit from a potential price decline. Look for out-of-the-money put options with an expiration date that aligns with your timeframe for the expected downward movement.
• Alternative Option Trade: Implement a bear put spread strategy by buying a put option with a higher strike price and simultaneously selling a put option with a lower strike price. This strategy can limit potential losses while benefitting from a bearish move.