Trade Alert 5/23/2024

We currently have a bearish trade on AMD. Today we are adding another bearish trade to the mix. The major markets hit new all-time highs today. However, ugly reversals are happening. In addition, market breadth is faltering. For example, on Monday 68% of stocks were above their 50-day moving avg. As of today it is only 58% of stocks, the short-term not looking so good… Bought a Put Butterfly in IBM as follows: Buy to open: IBM Aug 16th (monthly) 165.00 strike put (ratio of 1) Sell to open: IBM Aug 16th (monthly) 150.00 strike put (ratio of 2) Buy to open: IBM Aug 16th (monthly) 135.00 strike put (ratio of 1) Debit: 2.37 Max risk = 2.37 or $237.00 per spread Max reward = 12.63 or $1,263.00 per spread