How to Nail a Supply Zone Trade on Kroger Before the Market Opens
Sep 18, 2025How to Plan a Winning Kroger Put Trade Beforethe Market OpensHey traders! Ever wonder how pros stack the odds before the opening bell? In this pre-market breakdown, we turn Kroger’s ($KR) post-earnings volatility into a textbook supply zone put option trade. No guesswork—just pure price action planning. Perfect for beginners ready to level up with supply and demand.
The Setup: Kroger Earnings Drop
Step 1: Spot the Supply Zone in Pre-MarketSupply Zone = Where sellers stepped in hard.
Step 2: Plan the Put Option Trade
Why $69.50? It’s the “value area” of the zone—where smart money defends.
Step 3: Why Earnings = Your Edge
The Trade Plan (Written Pre-Open)
Beginner Action Steps
The Outcome?Price opened, kissed $69.50, reversed hard. Puts went from $1.20 → $3.80 in 18 minutes. +216% on the option.But the real win? The plan—not the profit.
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#Trading #StockMarket #SupplyAndDemand #TradingTips #Kroger
The Setup: Kroger Earnings Drop
- Event: Kroger reports earnings pre-market
- Reaction: Gap-up to $70.20, then immediate rejection
- Pre-Market Range: $69.20 – $70.20
- Our Job: Find the supply zone and plan the short
Step 1: Spot the Supply Zone in Pre-MarketSupply Zone = Where sellers stepped in hard.
- Rally: Price gaps to $70.20
- Base: Tight consolidation near the high (weak buying)
- Drop: Sharp reversal down to $69.20
- Fresh (first retest post-earnings)
- High volume rejection candle
- Classic “drop-base-rally” failure
Step 2: Plan the Put Option Trade
|
Element
|
Plan
|
|---|---|
|
Instrument
|
$KR Put Option (weekly, ~$70 strike)
|
|
Entry Trigger
|
Price retests $69.50 (middle of supply zone) + bearish candle
|
|
Stop Loss
|
Above zone: $70.30 (invalidates supply)
|
|
Target
|
Pre-market low: $69.20 → option delta explosion
|
|
Risk-Reward
|
1:3+ (option premium scales fast on gap fills)
|
Step 3: Why Earnings = Your Edge
- Volatility Spike → fatter option premiums
- Institutional Orders → visible in pre-market volume
- Gap Fills → 80%+ of gaps retest origin (use it!)
The Trade Plan (Written Pre-Open)
IF $KR opens and retests $69.50 with rejection
THEN buy $70 put @ market
STOP: $70.30 (zone high)
TARGET: $69.20 → scale out 50%
LET RUNNERS ride to $68.50 if momentum confirms
Planned in 5 minutes. Executed in 20.THEN buy $70 put @ market
STOP: $70.30 (zone high)
TARGET: $69.20 → scale out 50%
LET RUNNERS ride to $68.50 if momentum confirms
Beginner Action Steps
- Pull pre-market chart (Thinkorswim, TradingView)
- Mark the gap range
- Draw supply/demand zones from the first 15 mins
- Write the plan — entry, stop, target
- Wait for YOUR trigger — no FOMO
The Outcome?Price opened, kissed $69.50, reversed hard. Puts went from $1.20 → $3.80 in 18 minutes. +216% on the option.But the real win? The plan—not the profit.
Want Live Trade Plans Like This?Subscribe for daily pre-market breakdowns.
Join our Slack for real-time alerts and community Q&A!
Your TurnComment below: Have you traded earnings gaps before? What’s your go-to setup?Let’s talk strategy!
#Trading #StockMarket #SupplyAndDemand #TradingTips #Kroger
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