Technical Pressure Keeping a Lid on Restaurant Brands Stock

Now looks like a good time to weigh in on QSR with puts

Sep 20, 2023 at 2:46 PM
facebook X logo linkedin

Subscribers to Schaeffer's Weekend Trader options recommendation service received this QSR commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

Restaurant Brands International Inc (NYSE:QSR) has been failing near the $70 region, a level of resistance since mid-August, and a line of pressure prior to the stock’s post-earnings breakout in May. Both the stock’s 20- and 200-day moving averages are now keeping a lid on gains, an area that coincides with its year-to-date AVWAP level. With an inverted hammer candlestick formation forming on its recent uptrend, we are betting on the mounting technical resistance to trip up QSR going forward.  

QSR Sep15

The $70 and $72.50 levels are home to large call open interest (OI), with very little put OI below to act as support. QSR’s 50-day call/put volume ratio of 2.85 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 92% of readings from the past year, leaving plenty of room for a pessimistic shift amongst options traders.
Plus, looks like a good time to weigh in on the security's next move with options. The stock is seeing attractively priced premiums at the moment, per its Schaeffer's Volatility Index (SVI) of 16%, which sits in the 7th percentile of its annual range. Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) sits at a relatively high 81 out of 100, meaning QSR has exceeded option traders' volatility expectations during the past year. 
Our recommended put option has a leverage ratio of 14.3 and will double on a 6.8% drop in the underlying shares.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI