Hubert Senters here.
Let’s take a look at Walgreens Boot Alliance. It’s all known Walgreens. We got a bracket trade here. Bracket trades are initiated for one or two reasons. It can be potentially three of it. These are the main two. Earnings, they’ll either gap up or gap down.
Or news related like somebody did something wrong or somebody did some right. So what you’re going to do is you’re going to find the range that it had today. You’re not going to trade it today. Heads up you can’t. You’re receiving this video after the market closes.
You can trade it tomorrow which will be Friday. If it trades or closes above $40.30 it’s a potential long. Now, I say that because you have to have your rules in place before you do this trade. If my rule is if it trades above $40.30 and then it goes above $40.30 then closes lower I’ll get stop then I lose money.
Your rule might be I want it to close above $40.30 which means you’re going to get a worst entry but it may not stop you so. Pluses and minuses to both strategies. Now, on the downside bracket $38.15 if it trades or closes below that would be a decent short.
Now, we’re just going to do a little bit of homework and see what this thing has been doing in the last six months. So 2019 it’s been in a pretty good downtrend. It bounced mid 2019 and then continue to strand lower. We do have a little bit of support and by little, I mean there’s actually some decent support down here.
As you can see in the area of $28.31 to I would say $21. So in this strategy that we’re looking at it is to short this area potential and then cover down here in the area of $28 to $21. Now, if you don’t like shorten things I understand. Let this thing drift down here to $28 try to nibble on the long side at $28 down to $21.
Good luck. Hope it helps. See you on the next video.
Hubert.
