POOL
Pool Corporation
Rating 3.4 / 5 Recommendation Hold

Credit put spread analysis · · Moderate setup

IV Rank
64
Implied volatility percentile
Trend
0.69
Long-term trend score
Safety
7/9
Quality checks passed
Drop
-8.0%
Day 2 of drop
Reversal
Doji
Day 4
1Y Change
7.9%
Trailing 12 months
Earnings
Clear
No event in window

AI analysis

The AI's notes below mention opening a position, but the rating (3.4/5) sits below our public-display threshold of 3.5/5, so this setup is marked Hold rather than as a tradable idea.

Analyzing POOL after a sharp -7. 97% drop to $186. 64.

The stock is still up 7. 9% over 2 months, but the single-day plunge creates potential for a short-term oversold bounce, which is the classic setup for a credit put spread. The high IV of 64% provides attractive premium, and the Safety score of 7/9 suggests fundamental resilience.

However, the Trend score of 69% is concerning, indicating the longer-term uptrend may be weakening. The 'Doji reversal day 4' signal is a minor positive but not a strong confirmation of a bottom. The primary risk is that this drop is the start of a deeper correction, not a one-off event.

Given our moderately aggressive temperament, we can lean OPEN, but we must structure the trade defensively. We will sell a put 5% out-of-the-money to collect decent premium while maintaining a buffer. The spread will be kept narrow to manage buying power and define risk clearly.

The calculated credit meets our minimum 0. 25 credit-to-width ratio, providing a reasonable risk/reward for a volatile name. This is a decent, not perfect, setup—we are getting paid for the elevated volatility and recent panic, but we acknowledge the trend is no longer strongly bullish.

Trade history on POOL

Every live credit put spread we've opened on this ticker — what was traded, when, and how it ended.

OpenedStrikes (S/B)ExpirationCreditP/LOutcome
Feb 24, 2026 $185.00/$175.00 Mar 26, 2026 $4.25 $1.45 Win

Earlier analyses

  1. 3.7/5 Open trade

    Analyzing POOL at $190.44 after a sharp -7.97% single-day drop. The stock is still up 7.9% over two months, indicating the recent sell-off is a pullback within a longer-term uptrend (Trend: 69%). The high Safety score of…

  2. 4.5/5 Open trade

    The stock has dropped -14.48% recently, and the current price is $217.26. The data shows an uptrend of 16.6% over 2 months, with a trend strength of 50%, safety rating of 7/8, and IV at 57%. A hammer reversal signal was…

  3. 3.5/5 Hold

    The POOL stock has dropped significantly by -14.48% yesterday, which might be an opportunity to consider a credit put spread. However, there are some concerns as the Safety score is only 4/8, and there is no reversal sig…