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Levels and Options Trade Review: SNDK

Today Dan Passarelli discusses a successful trade that was executed in his Market Taker Live Advantage Group Coaching session.

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.

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