SPGI: Buying Opportunity Spotted

While I was looking through my ‘buy list’ this morning to see if any stocks were offering an attractive trade setup Oct 1st, 2024 SPGI: Buying Opportunity Spotted Dear Reader, While I was looking through my ‘buy list’ this morning to see if any stocks were offering an attractive trade setup, I came across this one trade and I didn’t need to see any others. You may have seen this trade setup earlier today too, but if not, don’t worry, I am going to tell you exactly which stock is currently trading in the ‘Buy Zone’.  The stock that caught my eye was S&P Global Inc., symbol: (SPGI). Once I saw the stock chart for S&P Global Inc., I noticed that the stock had traded into prime trade entry territory, which I call my ‘Buy Zone’. Below is a snapshot of SPGI’s current stock chart. Let’s do some analysis of the chart so you can see what made me stop what I was doing and begin looking for a potential trade to place. Looking at this chart for SPGI, you can see the stock is in the midst of a strong bullish uptrend which we want to target. But this alone is not enough to convince me that I need to jump in on a trade right then. Another crucial component of placing successful trades over time is knowing the correct time to enter the trade. This is why I always look at the Keltner Channels before I fire off a trade. Keltner Channels can serve as an overbought or oversold indicator for stocks. 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, more likely than not, the stock will soon experience a slight pullback. When we identify stocks in powerful uptrends, these are the stocks we want to trade and we use the Keltner Channels to help pick our entry point. When a bullish stock dips into our ‘Buy Zone’, this is when we want to put on a trade. 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 bullish stock is likely to continue rallying. How I Would Look to Trade It Now that we have identified the stock that we want to trade and we have pinpointed our entry point, the next question is how do we actually want to gain exposure to this trade? Of course, you could simply buy the stock shares, which we sometimes do, but, many times when we spot a setup like this we want to add a bit more leverage to our position to unlock more explosive profit potentials. With a setup like this, we like to find a call option to purchase which would provide us with a little more leverage on our trade. By doing this, should the bullish trend continue, our trade is positioned to produce higher profits when compared to just owning the underlying stock shares. When selecting which call option to purchase, I often rely on my 1% Rule to help narrow down my choice of option strikes. The 1% Rule helps me select an in-the-money option that has a higher probability of producing a profit when compared to an at-the-money or out-of-the money option. Once I have one selected I will vet the trade using my Call Option Purchase calculator to determine the trade’s profit potential. Below is a snapshot of my Call Option Purchase Calculator that shows the profit potential analysis for my trade. This example examines a range of SPGI shares remaining flat up to a 12.5% increase at option expiration. 248.4% Profit Potential for SPGI Option The trade analysis shows that if SPGI shares were to increase by just 1% at option expiration, this trade would make 11.2%. Then looking at a few of the bigger potential moves, if SPGI shares were up 5.0% at option expiration, our option would be set to profit 116.6%! If that doesn’t sound good enough, get this, if SPGI shares were up 10.0% at option expiration, this call option would be set to produce a 248.4% profit! That means the call option would outperform the stock more than 24 to 1! By following my 1% Rule to select which call options to purchase, this has helped me in the past to juice my trade’s profit potential, just like in the example shown above. Additionally, the 1% Rule helps to increase the odds that the option will profit as the underlying stock only has to increase by 1% for the option to begin profiting. The Hughes Optioneering Team is here to help you identify high-probability trades 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. Have Your Heard of Chuck’s Champion Trader? Have you heard? I have a brand-new system that I’m sharing for the first time ever! I call it [Chuck’s Champion Trader](! As I mentioned, I’ve never shared this until NOW! As a member of Trade of the Day, I’m giving you early access to become a founding member of [Chuck’s Champion Trader](. For more information, call my team at (866) 661-5664 or click the button below to schedule a call. 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 [Still Time to Buy Fiserv’s Breakout?]( [Is Zillow’s Breakout Just Getting Started?]( [CBRE: Has this Stock Caught Your Eye Yet?]( --------------------------------------------------------------- [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. 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. This email was sent to {EMAIL} by chuckstod@tradewins.com TradeWins Publishing Corp.528 North Country Rd.St. James, NY 11780 [1-Click Unsubscribe]( | [Edit Profile]( | [Manage Subscriptions]( | [Report Spam](