Time: 2024-06-01
After Boston Beer Co (SAM) missed earnings estimates in February 2024, the stock has been on a bearish downtrend, hitting a fresh 52-week low recently. Utilizing technical indicators, including RSI and DMI, confirms the bearish momentum. The DMI crossover showing the DI- above the DI+ indicates increasing bearish sentiment. A 'bear put spread' trade is being used to capitalize on this trend. The trade involves buying a $270 put and selling a $260 put, aiming for a 100% return if SAM stays at or below $260 by expiration date. To limit losses, the strategy includes capping losses at 50% of the investment.
Business
