Have You Seen This Pharma Stock?

Yesterday, we looked at a Daily Price Chart of   July 31st, 2024 Have You Seen This Pharma Stock? Dear Reader, Yesterday, we looked at a Daily Price Chart of Marsh and McLennan Co., noting that MMC stock has been making a series of new 52-Week Highs recently. For today's Trade of the Day e-letter we will be looking at a monthly chart for Regeneron Pharmaceuticals, Inc. stock symbol: REGN. Before breaking down REGN's monthly chart let's first review what products and services the company offers. Regeneron is a biotechnology company focused on the discovery, development and commercialization of treatments targeting serious medical conditions. The company's portfolio boasts nine marketed drugs – Eylea, Dupixent, Praluent, Kevzara, Libtayo, Evkeeza, Inmazeb Arcalyst and Zaltrap. Now, let's begin to break down the monthly chart for REGN stock. Below is a 10-Month Simple Moving Average chart for Regeneron Pharmaceuticals, Inc. Buy REGN Stock As the chart shows, in August, the REGN 1-Month Price, crossed above the 10-Month simple moving average (SMA). This crossover indicated the buying pressure for REGN stock exceeded the selling pressure. For this kind of crossover to occur, a stock has to be in a strong bullish uptrend. Now, as you can see, the 1-Month Price is still above the 10-Month SMA. That means the bullish trend is still in play!  As long as the 1-Month price remains above the 10-Month SMA, the stock is more likely to keep trading at new highs and should be purchased. Our initial price target for REGN is 1115.00 per share. Profit if REGN is Up, Down, or Flat Now, since REGN's Monthly Price is currently trading above the 10-Month SMA and will likely rally from here, let's use the Hughes Optioneering calculator to look at the potential returns for a REGN 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 REGN stock 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 REGN on 7/31/2024 before commissions. Built in Profit Potential For this option spread, the calculator analysis below reveals the cost of the spread is $300 (circled). The maximum risk for an option spread is the cost of the spread. The analysis reveals that if REGN stock is flat or up at all at expiration the spread will realize a 66.7% return (circled).  And if REGN stock decreases 7.5% at option expiration, the option spread would make a 66.7% return (circled).  Due to option pricing characteristics, this option spread has a 'built in' 66.7% 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 $63,000. With the stock purchase you are risking $63,000 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. Check out Chuck's High-Accuracy Micro Trades On Monday, I went live to discuss my exciting high-powered 'Micro Trades'. These Micro Trades give you the opportunity to profit in all different sorts of markets and take advantage of volatility. If you weren't able to attend my live session then, you're in luck. We recorded the session so that YOU still have the opportunity to watch. Click HERE to watch the replay so you don't miss out on this exciting strategy! 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 Articles MMC Rallies to New All-Time High Real Estate ETF Zooms Higher! J.P. Morgan Chase Stock Surges     © 2024 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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