Struggling Travel Stock for Options Bears to Bears to Snag

The shares are sitting below half their all-time highs

Aug 30, 2022 at 1:37 PM

EXPE

After a roughly 20% rally off their July low, the shares of Expedia Group Inc (NASDAQ:EXPE) are seeing failure at the 80-day moving average, as well as the site of the stock's May lows earlier this month. Just within this past week, the stock broke below a trendline connecting higher lows since July, and now EXPE sits back below the $109 region, which is half the equity's all-time high. Considering this technical backdrop, now looks like the perfect time to speculate on Expedia stock's next move with puts.

Short interest is sitting at multi-year lows of late, and recent short covering has done little to support the stock, pointing to underlying technical weakness. Short interest did tick higher during its most recent reporting period, however, which could be a risk to bulls should these shorts become aggressive.

Finally, our recommended put has a leverage ratio of -5.49, and will double in a 15.5% drop in the underlying equity.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this EXPE commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

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