Hard to Ignore this Staple’s Trend

Yesterday, we looked at a Daily Price Chart of Consolidated Edison, Inc., noting that ED’s OBV line is sloping up, va Sep 6th, 2024 Hard to Ignore this Staple’s Trend Dear Reader, Yesterday, we looked at a Daily Price Chart of Consolidated Edison, Inc., noting that ED’s OBV line is sloping up, validating the stock’s recent trend. For today’s Trade of the Day we will be looking at a Daily Price chart for Kimberly Clark Corp. stock symbol: KMB. Before breaking down KMB’s daily price chart let’s first review which products and services are offered by the company. Kimberly-Clark Corporation is principally engaged in the manufacture and marketing of a wide range of consumer products around the world. The company sells its products to supermarkets; mass merchandisers; drugstores; warehouse clubs; variety and department stores; retail outlets; manufacturing, lodging, office building, food service, and health care establishments; and high volume public facilities. Now, let’s begin to break down the Daily Price chart for KMB. Below is a Daily Price Chart with the price line displayed by an OHLC bar. Buy KMB Stock The Daily Price chart above shows that KMB stock began reaching a series of higher highs and higher lows since mid-March. 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 KMB stock is 152.50 per share. Profit if KMB is Up, Down, or Flat Now, since KMB stock is currently making a series of higher highs and higher lows and will likely rally from here, let’s use the Hughes Optioneering calculator to look at the potential returns for a KMB 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 KMB 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 KMB on 9/4/2024 before commissions. Built in Profit Potential For this option spread, the calculator analysis below reveals the cost of the spread is $635 (circled). The maximum risk for an option spread is the cost of the spread. The analysis reveals that if KMB stock is flat or up at all at expiration the spread will realize a 57.5% return (circled). And if KMB stock decreases 7.5% at option expiration, the option spread would make a 13.8% return (circled). Due to option pricing characteristics, this option spread has a ‘built in’ 57.5% 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 $68,000. With the stock purchase you are risking $68,000 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. 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]( *Trading incurs risk and some people lose money trading.  --------------------------------------------------------------- See Related Articles [Institutions Piling into this Utility Stock]( [ADP: H.R. Giant Gains Momentum]( [Does ABBV Have Further to Run?]( --------------------------------------------------------------- [TradeWins Logo](  © 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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