MMC Rallies to New All-Time High

Yesterday, we looked at a Daily Price Chart of the   July 30th, 2024 MMC Rallies to New All-Time High Dear Reader, Yesterday, we looked at a Daily Price Chart of the Real Estate Select Sector SPDR ETF, noting that XLRE's OBV line is sloping up, validating its bullish trend. For today's Trade of the Day we will be looking at a Daily Price chart for Marsh and McLennan Co. stock symbol: MMC. Before breaking down MMC's daily price chart let's first review which products and services are offered by the company. Marsh & McLennan Companies Inc. is a globally leading insurance broker. Currently operating under the Marsh and Guy Carpenter brands, the company is a global professional services firm providing risk and insurance services, risk consulting, and employee benefits consulting services to clients worldwide. Marsh & McLennan provides insurance and consulting services worldwide.   Now, let's begin to break down the Daily Price chart for MMC. Below is a Daily Price Chart with the price line displayed by an OHLC bar. Buy MMC Stock The Daily Price chart above shows that MMC stock has been hitting new 52-Week Highs regularly over the past month. Simply put, a stock does not just continually hit a series of new 52-Week Highs unless it is in a very strong bullish trend. The Hughes Optioneering team looks 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. You see, after a stock makes a series of two or more 52-Week Highs, the stock typically continues its price uptrend and should be purchased. Our initial price target for MMC stock is 227.54 per share. 90.1% Profit Potential for MMC Option Now, since MMC stock is currently making a series of new 52-Week Highs this means the stock's bullish rally will likely continue. Let's use the Hughes Optioneering calculator to look at the potential returns for a MMC call option purchase. The Call Option Calculator will calculate the profit/loss potential for a call option trade based on the price change of the underlying stock/ETF at option expiration in this example from a flat MMC price to a 12.5% increase. The Optioneering Team uses the 1% Rule to select an option strike price with a higher percentage of winning trades. In the following MMC option example, we used the 1% Rule to select the MMC option strike price but out of fairness to our paid option service subscribers we don't list the strike price used in the profit/loss calculation. Trade with Higher Accuracy When you use the 1% Rule to select a MMC in-the-money option strike price, MMC stock only has to increase 1% for the option to breakeven and start profiting! Remember, if you purchase an at-the-money or out-of-the-money call option and the underlying stock closes flat at option expiration it will result in a 100% loss for your option trade! In this example, if MMC stock is flat at 221.23 at option expiration, it will only result in a 6.9% loss for the MMC option compared to a 100% loss for an at-the-money or out-of-the-money call option. Using the 1% Rule to select an option strike price can result in a higher percentage of winning trades compared to at-the-money or out-of-the-money call options. This higher accuracy can give you the discipline needed to become a successful option trader and can help avoid 100% losses when trading options. The goal of this example is to demonstrate the powerful profit potential available from trading options compared to stocks. The prices and returns represented below were calculated based on the current stock and option pricing for MMC on 7/30/2024 before commissions. When you purchase a call option, there is no limit on the profit potential of the call if the underlying stock continues to move up in price. For this specific call option, the calculator analysis below reveals if MMC stock increases 5.0% at option expiration to 232.29 (circled), the call option would make 41.6% before commission.  If MMC stock increases 10.0% at option expiration to 243.35 (circled), the call option would make 90.1% before commission and outperform the stock return 9 to 1*.  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. 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. Check out Chuck's High-Accuracy Micro Trades Yesterday, 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 yesterday, 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 Real Estate ETF Zooms Higher! J.P. Morgan Chase Stock Surges TOD Winner: Camden Property Trust     © 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. 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