DaytradeTeam Brainzzzz

Back on December 12th, I told you that SNDK was poised for a big move in one direction or another, and that the best way to profit form that was to use a straddle or strangle options spread. Well, since then the stock has moved up $17/share and has made some really great options trading profits for those that listened.

Now we find ourselves in a very similar situation as SNDK tests 52 week highs today and looks poised for yet another breakout in one direction or another:

Notice how SNDK is now challenging its old high. A penetration and close above 66.00 would indicate further movement to the upside and a nice breakout pattern. On the other hand, if SNDK pulls back here, it will form a bearish double-top formation. In either case, it is very likely that SNDK will move big over the next month or so, and owners of strangle options will likely make a handsome profit.

For strangle options, I always like to go at least 3 months out with strikes that produce a net debit of under $1.00 for the put and call combined.

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