May 19, 2020 - MDT Alert (AMN)

Today, I would like to make one more suggestion and it is on a stock that has been oversold but has held support of the lower band on its daily chart.

The stock is AMN Healthcare Services, Inc. (AMN).

It is trading just above the lower band on its daily chart, which is $37.83 and as I write, AMN is trading for $43.32.

I am going to recommend a debit spread,

Here is the trade.

Buy to Open July 17th - $45.00 call @ $2.90

Sell to Open July 17th - $50.00 call @ $1.50

The net debit will be $1.40 per spread, with a maximum gain of $3.60 per spread.

Based on the nominal portfolio, limit the trade to 8 spreads or about 1.1% of the portfolio.

/by

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