My Options Trading Pick For Monday, March 25, 2024, Is Now Live.
$QSR Restaurant Brands International Inc is in a bullish trend, and breaking below its $79.34 support level. I'm going to risk $325 per contract for a potential $425 profit, a 130.77% return.
Commentary: The current technical condition for $QSR is strong and the underlying indicators should keep the current trend intact. The stock has underperformed the market when compared to the S&P 500 over the last 50 trading days. The MACD is confirming that the intermediate-term trend is bullish. QSR's chart formation indicates a strong rising trend. Upside momentum, as measured by the 9-day RSI indicator is positive but is beginning to slow.
Over the last 50 trading sessions, there has been more volume on up days than on down days, indicating that it is under accumulation, which is a bullish condition. The stock is trading above a rising 50-day moving average. This validates the strong technical condition for QSR. The stock is above its 200-day moving average which is pointed up indicating that the intermediate-term trend is bullish.
🎯 My target price is $86.15 by expiry and I need to be above $80.75 for the trade to be profitable.
Strategy: Call Vertical $QSR
Trade Breakdown:
This is a bullish strategy with a limited risk of $325.00 and a limited potential reward of $425.00. This strategy will profit if the stock closes above $80.75 by May 17, 2024. There is a 40.43% probability this will happen.
Entering The Trade:
Bid: $2.95 Mid: $3.10 Ask: $3.25 Avg Premium: $3.25
Please note that these prices were taken during market hours. If they change dramatically by the time you read this, use your discretion. Stop Loss at 50% on this trade.
$QSR Restaurant Brands International Inc
Trade Checklist:
Stock Trend: The strategy you have chosen is bullish, however, QSR's 1m trend is neutral. You are trading against the current trend of the market.
Market Trend: The strategy you have chosen is bullish and currently the S&P 500's 1m trend is bullish.
Earnings Date: Be aware that there is an earnings call on Apr 30, 2024, which is before the expiration of your trade.
Spread & Liquidity: The bid/ask spread of this trade is sizable, it is recommended that you place a limit order near the MID price.
$QSR Alternative Trade For Level I Accounts:
Trade Breakdown:
This is a bullish strategy with a limited risk of $400.00 and unlimited profit potential. This strategy will profit if the stock closes above $81.50 by May 17, 2024. There is a 36.30% probability this will happen.
Entering The Trade:
Bid: $3.80 Mid: $3.90 Ask: $4.00 Avg Premium: $4.00
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I include a level I alternative option idea for those who do not have level II approval with their broker
What is account level 1 and 2?