Hey Income Hunters,

Restaurant Brands International Inc. (Ticker: QSR) owns 20k Burger King franchises and 10k others around the world.

QSR is well positioned internationally and they have developed a proficient e-commerce platform and loyalty programs. They also distribute a ~3% dividend. 

The stock is down 16% since its high of 77.60 in July and it looks to be putting in a low this week … 

Today, we’ll look at their technical chart pattern and options positioning to come up with a trading strategy … 

QSR Chart Pattern 

QSR has a nice set-up for a reversal to the upside … Notice the series of lower lows that were not met with lower relative strength (RSI). 

I see a pretty good buying opportunity against the $65 level, which is the put wall as you can see below …

The put wall is where the largest negative gamma strike is situated. This means there are a lot of puts at that strike, which will most likely be closed to book profits providing good support.

Unless we see puts rolling lower or new puts added we should see a nice bounce higher. Here is a visual of the QSR strikes.

What’s a Trade Idea?

My choice would be a simple call spread with a target of $70 with a stop loss on a close below $65 … This makes the trade a great low-risk/high-reward strategy …

The overall market is set for a relief rally into next week so the timing is right… Good Luck and as always …

Live and trade with passion, my friend,

Griff