Fast Trades for Option Trading Investors –
Petroleo Brasileiro (NYSE: PBR)
PBR has broken above resistance at $38.50. It should continue higher if oil prices continue to climb. Here is the best way to play more strength in Petroleo Brasileiro …
Buy the PBR Apr 41 Call up to $1.35 ($135 per contract).
After taking the position, enter a good-til-cancelled contingent order to sell this option if the stock hits its target price of $43.40. That should give you an option price of about $3.40, for a 151% profit.
Close this position and cut losses if the stock closes below $37.50, when the option price should be about 70 cents. The stock is currently trading at $39.74. The computer-simulated probability of this option hitting its target price is 14%.
Cracker Barrel Old Country Store (NASDAQ: CBRL)
CBRL broke below support at $50.20 and has no chart support for quite a ways lower. It should continue to fall if stocks do the same or if food prices continue to rise. Here is the best way to play more weakness in Cracker Barrel Old Country Store …
Buy the CBRL Apr 45 Put up to 70 cents ($70 per contract).
After taking the position, enter a good-til-cancelled contingent order to sell this option if the stock hits its target price of $45.80. That should give you an option price of about $1.80, for a 157% profit.
Close this position and cut losses if the stock closes above $51.20, when the option price should be about 40 cents. The stock is currently trading at $49.33. The computer-simulated probability of this option hitting its target price is 25%.
— All of our short-term recommendations can be taken for up to three days after they are recommended. Make sure the stock and option prices are close to where they were when we made the recommendation. If after three days you still have not gotten the position filled, cancel the order and wait for our new recommendations, as the profit probabilities may no longer be valid.
Ken Trester is editor of the popular Maximum Options program. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.
