New Highs for Data Storage Biz

On Friday, we looked at a Daily Price Chart of   July 1st, 2024 New Highs for Data Storage Biz Dear Reader, On Friday, we looked at a Daily Price Chart of Arista Networks, Inc., noting that ANET's 24/52 Day MACD is trading above the 18-Day EMA signaling a 'Buy'. For today's Trade of the Day we will be looking at a Daily Price chart for NetApp Inc. stock symbol: NTAP. Before breaking down NTAP's daily price chart let's first review which products and services are offered by the company. NetApp provides enterprise storage as well as data management software and hardware products and services. The company's product line comprises two storage platforms – FAS storage platform and E-Series platform. The company's all-flash storage portfolio comprises NVMe-based storage systems and new cloud-based services in order to provide hybrid storage architecture.  Now, let's begin to break down the Daily Price chart for NTAP. Below is a Daily Price Chart with the price line displayed by an OHLC bar. Buy NTAP Stock The Daily Price chart above shows that NTAP stock has been hitting new 52-Week Highs regularly since mid-May. 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 NTAP stock is 135.00 per share. 103.7% Profit Potential for NTAP Option Now, since NTAP 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 NTAP 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 NTAP 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 NTAP option example, we used the 1% Rule to select the NTAP 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 NTAP in-the-money option strike price, NTAP 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 NTAP stock is flat at 130.24 at option expiration, it will only result in a 1.3% loss for the NTAP 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 NTAP on 7/1/2024 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 NTAP stock increases 5.0% at option expiration to 136.75 (circled), the call option would make 51.2% before commission.  If NTAP stock increases 10.0% at option expiration to 143.26 (circled), the call option would make 103.7% before commission and outperform the stock return more than 10 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 PRO Trading Service! I don't want you to miss a single opportunity to potentially reach your goals. That's why I want to share this video I made about my PRO Trading Service.  I want you to follow in my footsteps for the opportunity to succeed beyond your wildest dreams, so please call my office at (737) 292-4425 and get started today! 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  Momentum Behind ANET's Recent Rally FTAI: Aviation Stock Flying Higher Meta Platforms Displays Durable 'Buy'   © 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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