Description
⋅ If you like the cyber security space, you can trade BUG or use it as a barometer as it's comprised of names such as PANW , CROWD ,ZS, etc.
I like this fund because... it's cheap. PANW is trading at almost $600 , options aren't cheap (JUN 620c is 28.4 or $2,840 a contract).
However if you wanted to go long on BUG JUN $32 calls they are trading at about 1.10 ($110) !
Technically, BUG has broken down from the upward channel and is currently trading below the weekly 30day moving average.
Bullish Scenario : Price breaks back into the upward channel , in which case an idea would to be go long with an initial PT of $38
Bearish Scenario : Price rejects at the channel / 30day moving average and we see the next leg down with an initial PT of $25
Of course, with each scenario one could go short / long in one of the individual stock names for a higher R/R trade