There is no question we try to protect our assets. Thorough research, limiting risk, adjusting position size. All things we can do to stay in the game and win more than lose. But once in a while, with the right piece of your account, you can take a long shot.
Insulet Corp. (PODD) is a biomed company that makes insulin pumps. I has been consolidating around a new high lately and hasn’t been able to break through to move higher. Take a look at the chart:
It has the potential to drop if it loses the support from the 10 day moving average. Even the chart above is showing bullish short, mid, and long term. What we will be looking for with this stock is for a break below the 10 day as a sign that it is heading lower. Couple that with a MACD Bearish Crossover where the purple line crosses below the red and we could see a decent drop.
If we wanted to take a longshot on this one we could look at buying a put option somewhere around 280 a month or two out. We’ll keep an eye on this and follow up to see how it plays out.
Keep learning and trade wisely.
Market Wealth Daily