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 October 31st, 2023 GPOR: Hidden Gem Outperforms Dear Reader, Yesterday, we looked at a Daily Price chart for the iShares Russell 2000 ETF noting that IWM has been making a series of new 52-Week Lows recently. For today's Trade of the Day e-letter we will be looking at a daily price chart for Gulfport Energy Corp. stock symbol: GPOR. Before breaking down GPOR's daily chart let's first review what products and services the company offers. Gulfport Energy Corporation is an independent natural gas and oil company. It focused on the exploration and development of natural gas and oil properties in North America. Now, let's begin to break down the Daily Price chart for GPOR stock. Below is a Daily Price chart with the 50-Day EMA and 100-Day EMA for GPOR.  50-Day EMA and 100-Day EMA 'Buy' Signal The 50-Day Exponential Moving Average (EMA) and 100-Day EMA are moving average indicator lines that can provide buy and sell signals when used together. When the shorter-term 50-Day EMA crosses above or below the longer-term 100-Day EMA, this provides either a buy or sell signal depending on which direction the stock price is moving.
When the 50-Day EMA (blue line) crosses above the 100-Day EMA (red line) this indicates that the stock's buying pressure has begun to outweigh the selling pressure signaling a 'buy' signal. When the 50-Day EMA crosses below the 100-Day EMA this indicates that the selling pressure has begun to outweigh the buying pressure signaling a 'sell' signal. Buy GPOR Stock As the chart shows, on April 20th, the GPOR 50-Day EMA, crossed above the 100-Day EMA. This crossover indicated the buying pressure for GPOR stock exceeded the selling pressure. For this kind of crossover to occur, a stock has to be in a strong bullish trend. Now, as you can see, the 50-Day EMA is still above the 100-Day EMA meaning the 'buy' signal is still in play. As long as the 50-Day EMA remains above the 100-Day EMA, the stock is more likely to keep trading at new highs and should be purchased. Our initial price target for GPOR stock is 130.50 per share. Profit if GPOR is Up, Down or Flat Now, since GPOR's 50-Day EMA is trading above the 100-Day EMA and will likely rally from here, let's use the Hughes Optioneering calculator to look at the potential returns for a GPOR call option spread. The Call Option Spread Calculator will calculate the profit/loss potential for a call option spread based on the price change of the underlying stock/ETF at option expiration in this example from a 7.5% increase to a 7.5% decrease in GPOR at option expiration. The goal of this example is to demonstrate the 'built in' profit potential for option spreads and the ability of spreads to profit if the underlying stock is up, down or flat at option expiration. Out of fairness to our paid option service subscribers we don't list the option strike prices used in the profit/loss calculation. The prices and returns represented below were calculated based on the current stock and option pricing for GPOR on 10/30/2023 before commissions. Built in Profit Potential For this option spread, the calculator analysis below reveals the cost of the spread is $620 (circled). The maximum risk for an option spread is the cost of the spread. The analysis reveals that if GPOR stock is flat or up at all at expiration the spread will realize a 61.3% return (circled). And if GPOR stock decreases 7.5% at option expiration, the option spread would make a 38.0% return (circled). Due to option pricing characteristics, this option spread has a 'built in' 61.3% profit potential when the trade was identified*. Option spread trades can result in a higher percentage of winning trades compared to a directional option trade if you can profit when the underlying stock/ETF is up, down or flat. A higher percentage of winning trades can give you the discipline needed to become a successful trader. The Hughes Optioneering Team is here to help you identify profit opportunities just like this one.  Interested in accessing the Optioneering Calculators? Join one of Chuck's Trading Services for unlimited access! The Optioneering Team has option calculators for six different option strategies that allow you to calculate the profit potential for an option trade before you take the trade. Trade High Priced Stocks for $350 With Less Risk One of the big advantages to trading option spreads is that spreads allow you to trade high price stocks like Amazon, Google, or Netflix for as little as $350. With an option spread you can control 100 shares of Netflix for $350. If you were to purchase 100 shares of Netflix at current prices it would cost about $41,000. With the stock purchase you are risking $41,000 but with a Netflix option spread that costs $350 your maximum risk is $350 so your dollar risk is lower with option spreads compared to stock purchases. Short-Term Program from Chuck! Chuck Hughes has just launched his exciting new trading service program, Lightning Trade Alerts. This new service focuses on low-cost & short-term options trade. Members will receive hand-picked options trades from the 10-Time Trading Champion, Chuck Hughes. Call our team at 1-866-661-5664 or 1-310-647-5664 to join or CLICK HERE to schedule a call! Wishing You the Best in Investing Success,  Chuck Hughes Editor, Trade of the Day Have any questions? Email us at dailytrade@chuckstod.com *Trading incurs risk and some people lose money trading.
See Related ArticlesSmall-Cap Crash Profit Opportunity? TLT: Profit From the Bond Wreck? Strong 'Buy' Signal: Time to Buy BRBR?  © 2023 Tradewins Publishing. All rights reserved. | Privacy Policy | Terms and Conditions | Contact Us If you didn't create an account using this email address, please ignore this email or unsubscribe using the link below. To ensure delivery of this email to your inbox and to enable images to load in future mailings, please add todaystrade@chuckstod.com to your e-mail address book or safe senders list. DISCLAIMER: Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by Legacy Publishing LLC. For additional information on auto-trading, you may visit the SEC's website: All About Auto-Trading. The information provided by the Legacy Publishing LLC ("Legacy") Trading Services, newsletters and educational publications ("Services") is not customized or personalized to any particular risk profile or tolerance. Nor is the information published by Legacy a customized or personalized recommendation to buy, sell, hold, or invest in particular financial products. Past performance is not necessarily indicative of future results. Please note that results may not be typical and can vary from person to person. There are inherent risks involved with investing in the stock and options market, including the loss of your investment. Any investment is at your own risk. You should only trade or invest your "risk capital" – money you can afford to lose. | |||
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