2024年1月31日星期三

Cybersecurity Gains: 'Buy' for Check Point!

Chart of the Day

January 31st, 2024

Cybersecurity Gains: 'Buy' for Check Point!

Check out this high-flying stock that I spotted today! The stock is Check Point Software Technologies, Ltd. stock symbol: CHKP.

Check Point Software Technologies Ltd. a well-known provider of information technology (IT) security solutions across the world. The company offers a comprehensive range of software and combined hardware and software products aimed at IT security to an operating system, a computer device, a server or a virtual desktop. 

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Now, let's take a look at the chart below.

CHKP Reaching New Heights

The Daily Price chart above shows that CHKP stock has been hitting new 52-Week Highs regularly since early January.

We look for stocks that are making a series of 52-Week Highs as this is a good indicator that the stock is in a powerful uptrend.

How I Amplify Potential Returns

Since CHKP is currently making new 52-Week Highs and will likely continue to rally from here, let's use our Optioneering Calculator to look at a potential call option purchase.

The goal of this example is to demonstrate the powerful profit potential available from trading options compared to stocks.

For this specific call option, the calculator analysis below reveals if CHKP stock increases 5.0% at option expiration to 168.03 (circled), the call option would make 58.2% before commission. 

If CHKP stock increases 10.0% at option expiration to 176.03 (circled), the call option would make 128.4% before commission and outperform the stock return nearly 13 to 1*. 

The prices and returns represented below were calculated based on the current stock and option pricing for CHKP on 1/31/2024 before commissions.

The leverage provided by call options allows you to maximize potential returns on bullish stocks.

The Hughes Optioneering Team is here to help you identify profit opportunities just like this one.

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.


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