Today Dan Passarelli discusses a successful trade that was executed in his Market Taker Live Advantage Group Coaching session. Taking a look at the stock SNDK, Dan points out there was strong support at $95, a level which presented a low risk entry with good profit potential. To take advantage of this setup, Dan suggested a bull call spread in which you would buy the 97.5 call and sell the 95 call for $1.60. Because of the strong support and breakout at $95, the trade is unlikely to lose money and has the potential of being worth $2.50, a strong risk/reward trade-off.

More from Video

Video: Here Is Why Carvana Isn't Worried About Amazon

Video: Here Is Why Carvana Isn't Worried About Amazon

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers

This Could Be the Summer of Hard Seltzer

This Could Be the Summer of Hard Seltzer