Trex TREX Stock & Option Trade Ideas

Based on the technical data for TREX, the stock is currently exhibiting bearish signals:

• MACD (Moving Average Convergence Divergence) is below the signal line, indicating a bearish trend.
• The RSI (Relative Strength Index) is below 50, suggesting bearish momentum.
• The stock price is below the middle Bollinger Band, indicating a potential downtrend.

Considering the bearish signals, here are some potential stock and option trading strategies for TREX:

• Stock Trade: Consider short-selling TREX shares with a stop-loss above the middle Bollinger Band to limit risk.
• Option Trade 1 (Bearish): Purchase put options with a strike price below the current price if expecting further downside movement. Evaluate the option’s expiration date based on your outlook.
• Option Trade 2 (Neutral to Bearish): Implement a bear put spread by buying an out-of-the-money put option while simultaneously selling a further out-of-the-money put option. This strategy profits from a decrease in the stock price.