ALL: High Conviction Trade Setup

Yesterday, we looked at a Daily Price Chart of  //links.tradewins.com/a/126/click/10339249/743397269/_b7d64099873109f86ee1656b22784701be6c4c8d/8ba4e8abb7114940f0a443a5b82ea211f53e8bf5 Sep 11th, 2024 ALL: High Conviction Trade Setup Dear Reader, Yesterday, we looked at a Daily Price Chart of [Duke Energy Corp.](, noting that DUK has been making a series of higher highs and higher lows recently. For today’s Trade of the Day we will be looking at a Keltner Channel chart for Allstate Corp. stock symbol: ALL. Before breaking down ALL’s daily Keltner Channel chart let’s first review which products and services are offered by the company. The Allstate Corporation is the third-largest property-casualty insurer and the largest publicly-held personal lines carrier in the U.S. The company also provides a range of life insurance and investment products to its diverse customer base. Now, let’s begin to break down the Keltner Channel chart for ALL. Below is a Daily Price Chart and the three Keltner Channels for ALL stock. Buy ALL Stock The Hughes Optioneering Team uses the Keltner Channels as an indicator to determine whether a stock is overbought or oversold. If a stock’s daily stock price is trading above the upper Keltner Channel, this signals that the stock is temporarily overbought and subject to a retracement. Even stocks that are in the strongest bull trends do not advance in a straight line. There are always price retracements along the way. When a stock becomes overbought, its price will typically decline soon after as the inevitable profit taking occurs. The ALL daily price chart shows that the stock is in a strong price uptrend and has become overbought several times. You can see this as ALL has traded above the Upper Keltner Channel on multiple occasions recently. But, in every scenario when ALL became overbought, the stock soon experienced a pullback. Finding opportunities when a stock experiences a pullback is why the Hughes Optioneering Team uses the Keltner Channels. They help us find a lower-risk entry point. The Keltner Channel “Buy Zone” occurs when a stock is trading below the upper Keltner Channel. Once the daily price is trading below the upper channel, it provides a lower-risk buying opportunity as the stock is likely to rally. Our initial price target for ALL stock is 192.00 per share. Profit if ALL is Up, Down, or Flat Now, since ALL is currently trading in the Keltner Channel ‘Buy Zone’ this offers us a prime trade entry opportunity. Let’s use the Hughes Optioneering calculator to look at the potential returns for an ALL 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 ALL 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 ALL on 9/11/2024 before commissions. Unlock My Trading Secrets! With the [Options for Income Newsletter]( you’ll gain access to multiple trade setups every week along with a brief analysis of the underlying stock’s trend and a calculator breakdown of the setup. Our newsletter will guide you through the complex world of options trading, providing you with the tools and knowledge you need to master our strategies. Built in Profit Potential For this option spread, the calculator analysis below reveals the cost of the spread is $295 (circled). The maximum risk for an option spread is the cost of the spread. The analysis reveals that if ALL stock is flat or up at all at expiration the spread will realize a 69.5% return (circled). And if ALL stock decreases 7.5% at option expiration, the option spread would make a 61.8% return (circled). Due to option pricing characteristics, this option spread has a ‘built in’ 69.5% 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 $3,000 Trading Scholarship I don’t want you to miss a single opportunity to potentially reach your goals. That’s why I’d like to offer you a scholarship of the full $3,000 Enrollment Fee of my exclusive Lightning Trade Alerts Service*. I want you to follow in my footsteps for the opportunity to succeed beyond your wildest dreams, so please call Brad in my office at[ 1-866-661-5664]( or [1-310-647-5664Â](and get started today! You can also [CLICK HERE]( to schedule a call now! 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 [DUK: Utility Climbs to New Highs]( [‘Buy’ the Breakout In CBOE]( [Hard to Ignore this Staple’s Trend]( --------------------------------------------------------------- [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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