https://preview.redd.it/sb1gwbqopd2e1.png?width=2114&format=png&auto=webp&s=7da7906bdc3849a1008d911987b0028de0820ae7

1st Picture: In this picture we can see a Weekly chart of KHC, where the price of the stock is below the lower BB. with the b% (similar to stochastic), we can also see the stock is starting to reverse from the undervalued price. We can see how every time it reverses price it goes to the 20 SMA, which is at 34.34 (this will be important for the options strategy).

https://preview.redd.it/kvrjo5qppd2e1.png?width=2114&format=png&auto=webp&s=290bd6005ee4f1bc207751bf3146049b90805577

2nd Picture: Here we can see the daily chart of KHC, and how the daily candles are matching the lower bands from the weekly, but in this case already seeing a reversal in price. This can also be observed in the bandwith from the BB, where we see the bulge is ending, and in John Bollinger words: " When bulge separates from bandwith, we know the trend is dead" Meaning in this context, that the downtrend has died. This again correlates with seeing an overextended price below the lower BB on weekly chart and a reversing trend in the daily.

https://preview.redd.it/4900lbjspd2e1.png?width=1431&format=png&auto=webp&s=d56da5bd2bdf750e2f9231a267b3e9c6273afc34

3rd Picture: Now, my proposed strategy is a bull call spread January 17th 2025. I think this strategy yields a perfect balance between risk ratio and price target. As said above, the sma20 is around 34, so I would not be surprised if KHC touches it in the upcoming two months.