A $330 Win: Breaking Down the Budweiser Trade

By Cash Flow University · 2026-02-03 · 4 min read

Discover how a simple trade with Budweiser led to a $330 profit, and learn the strategies behind this successful option trade.

This trade came straight from a CFU alert. I spotted the setup, shared it with members, and we rode it for a 37.5% return in just three weeks. Let me break down exactly how I read the chart and why this trade worked.

The Setup: Reading Budweiser's Chart

Before I enter any trade, I need to understand where price has been and where it's likely to go. That starts with identifying support and resistance levels.

For Budweiser (BUD), I identified two critical levels:

$65 Support Zone: BUD had bounced off this level multiple times in the preceding months. Each time price approached $65, buyers showed up. This wasn't random. Institutional money was accumulating shares at this level, creating a reliable floor.

$72 Resistance Target: Looking left on the chart, I could see $72 had acted as a ceiling before. Sellers had taken profits there in the past, and I expected the same behavior again. This gave me a clear profit target.

Break of Structure: The Entry Signal

Knowing support and resistance isn't enough. I needed confirmation that buyers were actually in control. That's where Break of Structure (BOS) comes in.

Here's what I saw on BUD's chart:

• Price had been making lower highs (bearish structure)
• Then it bounced hard off the $65 support
• On the move up, it broke above a previous swing high
• That break confirmed: buyers are now in control

This BOS was my green light. Without it, I would have waited. The combination of strong support and a confirmed BOS gave me high conviction for a bullish move toward $72.

Why I Chose a Call Option

With a clear setup, I needed to choose my weapon. I went with a call option because it gave me leveraged exposure to the upside while defining my maximum risk.

Some traders would buy 100 shares of BUD at $65, risking $6,500. If the stock drops 10%, that's a $650 loss with no clear floor. With my call option, I knew exactly what I could lose: the premium paid.

The Trade Execution

On January 13th, I entered the trade:

Why the $65 strike? Because price was sitting right at support. This gave me an at-the-money (ATM) option with good delta, meaning the option would move significantly as the stock price increased.

The January 27th expiration gave me two weeks for the trade to work. Not a ton of time, but enough for a move to resistance if the thesis was right.

The Exit: Hitting the Target

Over the next three weeks, BUD did exactly what the chart suggested. Price rallied from support, respected the bullish structure, and moved toward resistance.

When BUD approached $72, I didn't get greedy. Remember, that's where sellers emerged before. Hoping for more when price hits a known resistance level is how winners turn into losers.

Key Takeaways

This trade worked because I followed a systematic approach:

1. Identified key levels – $65 support and $72 resistance gave me entry and exit targets before placing the trade
2. Waited for confirmation – The Break of Structure confirmed buyers were in control, not just hoping for a bounce
3. Defined my risk – $880 was the maximum I could lose, no surprises
4. Took profits at resistance – No greed, just executing the plan

This isn't luck. It's reading the chart, understanding market structure, and executing with discipline.

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