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Thursday, August 28th

”Liberty means responsibility. That is why most men dread it.”

– George Bernard Shaw

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Markets Today

🌏 Asia-Pacific: Mixed

🇪🇺 Europe: Mixed

🇺🇸 United States: Mixed

🛢️ Oil: Down

⚡ Crypto: Down

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How any home-based trader can use insider imprints
to piggyback off of corporate insiders!

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Major Market Events 

• Nvidia beats on earnings — Chipmaker tops estimates on revenue and profit, but data center sales fall short of lofty expectations
• Trump ramps tariff threats on China — White House signals fresh duties on imports, raising risks of another trade clash
• Big banks rally after earnings — Strong results push financials higher, with analysts eyeing credit conditions ahead

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🤔 My Thoughts

We Don’t Trust This Bounce in Cracker Barrel

a small trade after the logo “reset”

 

Cracker Barrel tried a new logo, got roasted, and then went back to the old one.

The stock popped.

On yesterday’s Profit Panel, we pulled the hood up and didn’t like what we saw: still heavy capital spending, a long slide on the chart, and a bounce that looked more like a headline sugar rush than real demand.

I’m not shorting the company’s future, I’m just trading what I see on the tape. When a weak name pops on PR and then stalls, I look for a clean, defined plan to bet on a drift lower — with small size and simple exits.

Here’s how I approached it.

What we put on, and why

Live on air we walked through a ratio put spread on CBRL:

• buy 1 higher-strike put
• sell 2 lower-strike puts on the same expiration.

The idea is simple: if price slides toward that lower strike into expiration, the spread can pay nicely, and the cost to enter can be small. We used strikes near $22.50 (long) and $20 (short) to show the math.

The plain-English logic:

• If the bounce fades and the stock drifts down toward $20, the structure benefits.
• If the stock stays firm or grinds up, I keep the loss small by cutting early (no “hope” trades).
• If the stock falls hard below $20, you’re short one extra put. That’s why size must be tiny, and why I have a repair plan before I enter.

Safer variant (for newer traders)

If you don’t like the extra short put risk, you can use a broken-wing butterfly instead:

Just buy the $22.50 put… sell one $20 put… and buy a farther-out $17.50 put.

It’s still a “bet the bounce fades” idea, but your downside is capped from the start.

My “keep it simple” rules

• Small size. One spread is fine.
• Fast pay, fast exit. If the stock slides and the spread gains, I take profit in chunks.
• Hard line in the sand. If price reclaims the bounce zone and holds, I’m out. No debate.

Why this fits me: the story is weak, the bounce was PR-driven, and the chart still says caution. A small, smart structure lets me express that view without swinging a heavy bat.

Click here to watch the on-demand replay!

And don’t forget to register your spot here to join us next time we go live!

To Better Trading,

Alex Reid

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