Here is a great trade made in Campbell Soup Company (CPB) – in fact, you could say that it was "Mmm Mmm Good!" Our trader identified a really nice ascending triangle pattern, stayed patient, and waited until resistance was broken before entering. Confirmation is a key component in better timing a trade opportunity.
There are many different trading strategies available to take advantage of this type of setup in the options world. Following a personal Trading Plan, this trader decided to use a straight call option. With good trade management, a straight call option can continue to make significant money as long as the stock continues higher.
Typically, for the strategy chosen, the risk is the premium paid and our traders aim for a 50%+ return. At Maverick Trading, we pride ourselves on our community of traders. Every week in our live Trading Room, our traders share their favorite new trade setups (like the one above from last week) with all of their fellow Maverick traders.
NOTE: Chart(s) courtesy of FINVIZ.com.
There are many different trading strategies available to take advantage of this type of setup in the options world. Following a personal Trading Plan, this trader decided to use a straight call option. With good trade management, a straight call option can continue to make significant money as long as the stock continues higher.
Typically, for the strategy chosen, the risk is the premium paid and our traders aim for a 50%+ return. At Maverick Trading, we pride ourselves on our community of traders. Every week in our live Trading Room, our traders share their favorite new trade setups (like the one above from last week) with all of their fellow Maverick traders.
NOTE: Chart(s) courtesy of FINVIZ.com.
