CBRL Cracker Barrel Old Country Store Options Ahead of EarningsAnalyzing the options chain and the chart patterns of CBRL Cracker Barrel Old Country Store prior to the earnings report this week,
I would consider purchasing the 40usd strike price Puts with
an expiration date of 2024-9-20,
for a premium of approximately $2.53.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
CBRL
CBRL Broadening Top and Upcoming Dividend! (Price target: ~$176)The Broadening Top pattern forms when the price progressively makes higher highs (1, 3) and lower lows (2, 4) following two widening trend lines. The price is expected to move up or down past the pattern depending on which line is broken first. A bit of a toss up since the broadening top formation appears much more frequently at tops than at bottoms, and therefore usually has bearish implications. In this case, however, we see a strong up-trend with an Average Directional Index just shy of the 25 mark. Set limit order above market price to be sure we are looking at a bull broadening top, or for added risk buy the retracement when RSI corrects below 70. For best results take 50% position at each. Consider stop-loss below breakout price.
Added confidence from the fact that Cracker Barrel is recording a $1.20/share dividend on Jan 11th, issued on Feb 5th. Dividend hunters could help drive this trend up. CBRL reports earnings 02/20 BMO and Estimize revenue expectations are 0.77% higher than Wall Street's.
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CBRL - Key support breakdown short from $148.42 to $139.13 Looking to break 148.43. Target 139.13, Stop signal 152.33
* Trade Criteria *
Date First Found- August 23, 2017
Pattern/Why- Key support breakdown short
Entry Target Criteria- Break of $148.43
Exit Target Criteria- $139.13
Stop Loss Criteria- $152.33
Please check back for Trade updates. (Note: Trade update is little delayed here.)