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 July 12th, 2024 Strong Trend for Colgate-Palmolive Dear Reader, Yesterday, we looked at a Monthly Price Chart for the Camden Property Trust, noting that CPT's 1-Month Price is trading above the 10-Month SMA. For today's Trade of the Day we will be looking at a Daily Price chart for Colgate-Palmolive Co. stock symbol: CL. Before breaking down CL's daily price chart let's first review which products and services are offered by the company. Colgate-Palmolive is a global leader in the oral care hygiene market. It produces and distributions household, healthcare and personal care products. Its business is focused on four core categories including – Oral Care, Personal Care, Pet Nutrition and Home Care. Now, let's begin to break down the Daily Price chart for CL. Below is a Daily Price Chart with the price line displayed by an OHLC bar.  Buy CL Stock The Daily Price chart above shows that CL stock began reaching a series of higher highs and higher lows since late April. This pattern of bullish trading suggests the stock will march on to a further advance. You see, after a stock makes a series of two or more higher highs and higher lows, the stock typically continues its price up trend and should be purchased. Our initial price target for CL stock is 100.00 per share. 88.1% Profit Potential for CL Option Now, since CL stock is currently making a series of higher highs and higher lows 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 CL 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 CL 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 CL option example, we used the 1% Rule to select the CL 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 CL in-the-money option strike price, CL 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 CL stock is flat at 97.76 at option expiration, it will only result in a 3.7% loss for the CL 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 CL on 7/11/2024 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 CL stock increases 5.0% at option expiration to 102.65 (circled), the call option would make 42.2% before commission. If CL stock increases 10.0% at option expiration to 107.54 (circled), the call option would make 88.1% before commission and outperform the stock return nearly 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. Chuck's Lightning Trade Alerts! Chuck Hughes is offering YOU an opportunity to join his exciting trading service program, Lightning Trade Alerts. This service focuses on low-cost & short-term options trade. Members will receive hand-picked trades from the 10-Time Trading Champion, Chuck Hughes. Call our team at 1-866-661-5664 or 1-310-647-5664 to join! Wishing You the Best in Investing Success,  Chuck Hughes Editor, Trade of the Day Have any questions? Email us at dailytrade@chuckstod.com  See Related Articles'Buy' Alert for Under the Radar REIT UTHR: Biotech Buying Opportunity Pharma ETF Offers Strong Setup  © 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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2024年7月12日星期五
Strong Trend for Colgate-Palmolive
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